# Attachment- C SecondNoticeIndiana Register
TITLE 

### 326AIR POLLUTION CONTROL BOARD

FINDINGS AND DETERMINATION OFTHE COMMISSIONER PURSUANT TO IC 

### 13-14-9-7 AND SECOND NOTICE OF COMMENT PERIOD LSA Document

### #08-5

DEVELOPMENT OF AMENDMENTS TO RULES CONCERNING THE CLEAN AIR INTERSTATE RULE (CAIR)

PURPOSE OF NOTICE The Indiana Department of Environmental Management (IDEM) has developed draft rule language for amendments to the Indiana Clean Air Interstate Rule (CAIR) at 

### 326 lAC 

### 24-1, 326 lAC 

### 24-2, and 

### 326 lAC 

### 24-3. The purpose ofthis notice is to seek public comment on the draft rule, including suggestions forspecific language to be included in the rule. IDEM seeks comment on the affected citations listed and any other provisions ofTitle 

### 326 that may be affected bythis rulemaking.

CITATIONS AFFECTED: 

### 326 lAC 

### 24-1; 326 lAC 

### 24-2; 326 lAC 

### 24-3.

AUTHORITY: IC 

### 13-14-8; IC 

### 13-14-9; IC 

### 13-17-3-4; IC 

### 13-17-3-1.

STATUTORY REQUIREMENTS IC 

### 13-14-9-7 recognizes that undercertain circumstances it may be appropriate to reduce the numberof public comment periods routinely provided. In cases where the commissioner determines that the rulemaking policy alternatives available to IDEM are so limited that the notice offirst public comment period would provide no substantial benefit, IDEM may forgo this comment period and proceed directlyto the notice of second public comment period. Ifthe commissioner makes the determination oflimited rulemaking policy alternatives required by IC 

### 13-14-9- 

### Z. the commissionershall prepare written findings and include them in the second notice of public comment period published in the Indiana Register. This document constitutes the commissioner's written findings pursuant to IC 

### 13-14-9-7. The statute provides forthis shortened rulemaking process ifthe commissionerdetermines that "the rulemaking policy alternatives available to the departmentare so limited that the public notice and comment period under (IC 

### 13-14-9-3)

... would provide no substantial benefitto: (1) the environment; or (2) persons to be regulated orotherwise affected by the proposed rule.".

BACKGROUND On May 

### 12, 2005, U.S. EPA issued the Clean Air Interstate Rule (CAIR) that required 

### 28 states, including Indiana, and the District of Columbia, to supplement existing regulations to achieve substantial reductions of sulfurdioxide (S02) and nitrogen oxides (NO) emissions from fossil fuel-fired power plants. The Air Pollution Control Board final adopted the Indiana CAlf{rules on November 

### 1, 2006, which became effective on February 

### 25,2007. The Indiana CAIR rules 

### (326 lAC 

### 24) and amendments to the NO SIP Call rule 

### (326 lAC 

### 10-4) were first submitted to U.S. EPA for approval on January 

### 19, 2007. On October

### 22,2007 (72 FR 

### 59480), U.S. EPA gave limited approval of a revision to the Indiana state implementation plan (SIP). During U.S. EPA's review ofthe SIP submittal, U.S. EPA identified a numberof issues that need to be addressed by an amendmentto the Indiana CAIR rules at 

### 326 lAC 

### 24. The key issue that U.S. EPA identified concerns the definition of "large affected unit"; also referred to as nonelectric generating units (non-EGUs), in the CAIR NO ozone season trading rule 

### (326 iAC 

### 24-3). Indiana's CAIR NO ozone season rule expands the CAIR applicability provisions to include, as CAIR NO

ozone season units, NO SIP Call units not otherwise subjectto the CAIR program that do not generate electrictfy for sale (that is, units defined as "large affected units" under 

### 326 lAC 

### 10-4-2(27». U.S. EPA has stated that the definition of "large affected unit" also needs to bring into the CAIR program NO SIP Call units not otherwise subjectto CAIR that do generate electricity for sale (that is, units defined as

### "el~ctric generating units" under 

### 326 lAC 

### 10-4-2(16)). This will address any NO SIP Call units that may be exemptfrom the CAIR NO ozone season trading rule due to the exemption for cogei\eration in CAIR. While these deficiencies create the

### p~tential for

erroneous exclusion from the CAIR program of units that may meetthe NO SIP Call applicability criteria in the future, IDEM is not aware of any existing NO SIP Call units that would be €rroneouslyexcluded from the CAIR program atthe presenttime. IDEM is also eitheramending or adding the following definitions in the CAIR ozone
season trading rule that are necessaryto apply Indiana's NO SIP Call applicability provisions and to apply other provisions of Indiana's CAIR rule to NO SIP Call units: "comfuence commercial operation", "electricity for sale undera firm contract to the electric grid!, "fossil-fuel-fired", and "unit." IDEM is also proposing a few minorwording changes. This rulemaking to amend Indiana's CAIR rule also addresses U.S. EPA's revisions to the definition of

Date: Jun 26.2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 1Indiana Register cogeneration unit published on October 19, 2007 (72 FR 59190). CAIR includes an exemption for cogeneration units that meet certain criteria. In light of information concerning biomass-fired cogeneration units that may not qualifyforthe exemption due to their particularcombination offuel and technical design characteristics, U.S. EPA changed the cogeneration unit definition in CAIR. Specifically, U.S. EPA revised the calculation methodology for the efficiency standard in the cogeneration unit definition to exclude energy inputfrom biomass, making it more likelythat units cofiring biomass will be able to meetthe efficiency standard and qualifyforthe exemption. U.S. EPA has decided to require all CAIR states to change their rules so that definitions remain consistent across the CAIR region regardless ofwhetherthey have existing biomass c0generation units affected bythis action. IDEM is not aware of any biomass unit affected bythis decision in Indiana. Since IDEM is required by U.S. EPAto make these amendments forfull CAIR SIP approval and rulemaking policy alternatives are limited, IDEM is forgoing the notice offirst public comment period. IDEM invites comments and suggestions on the draft rule language.

Ie 13-14-94 Identification of Restrictions and Requirements Not Imposed under Federal Law No element ofthe draft rule imposes eithera restriction ora requirement on persons to whom the draft rule applies that is not imposed underfederal law. The amendments proposed will address U.S. EPA's concerns with the Indiana CAIR rule to allow forfull SIP approval.

Potential Fiscal Impact There are no fiscal impacts associated with these amendments.

Public Participation and Workgroup Information At this time, no workgroup is planned forthe rulemaking. Members ofthe previous workgroup formed for the development ofthe Clean Air Interstate Rule (CAIR) will be notified ofthis rulemaking to amend the Indiana CAIR rules adopted at 326 lAC 24-1, 326 lAC 24-2, and 326 lAC 24-3. Ifyou feel that a workgroup orother informal discussion on the rule is appropriate, please contact Susan Bem, Rules Development Section, Office ofAir at (317) 233-5697 or (800) 451-6027 (in Indiana).

Small Business Assistance Information IDEM established a compliance and technical assistance (CTAP) program under IC 13-28-3. The program provides assistance to small businesses and information regarding compliance with environmental regulations. In accordance with IC 13-28-3 and IC 13-28-5, there is a small business assistance program ombudsman to provide

a point of contact for small businesses affected by environmental regulations. Information on the CTAP program, the monthly CTAP newsletter, and other resources available can be found at: www.in.gov/idem/compliance/ctap/index.html Small businesses affected bythis rulemaking maycontact the Small Business Regulatory Coordinator:

Christina Lowry IDEM Compliance and Technical Assistance Program OPPTA

- MC60-04 100 North Senate Avenue W-041 Indianapolis, IN 46204-2251 (317)234-1191 c1owry@idem.in.gov The Small Business Assistance Program Ombudsman is: Megan Tretter IDEM Small Business Assistance Program Ombudsman MC 50-01

- IGCN 1307 100 North Senate Avenue Indianapolis, IN 46204-2251 (317) 234-3386 mtretter@idem.in.gov

FINDINGS The commissioner of IDEM has prepared written findings regarding rulemaking on amendments to Indiana's CAIR rules at 326 lAC 24-1, 326 lAC 24-2, and 326 lAC 24-3. These findings are prepared under IC 13-14-9-7 and are as follows: (1) The amendments proposed in this rulemaking will address (a) issues U.S. EPA identified in the limited approval of Indiana's state implementation plan (SIP) for CAIR published on October 22,2007, as well as other issues identified by U.S. EPA concerning full SIP approval; and (b) recent U.S. EPA technical amendments to CAIR published on October 19, 2007.

Date: Jun 26.2009 9:29:21AM EDT DIN: 20080123-tR-326080005FDA Page 2Indiana Register (2) I have determined that underthe specific circumstances pertaining to this ruie, the rulemaking policy alternatives are so limited that the public notice and comment period provided in the notice offirst public comment period would provide no substantial benefitto the environment orto persons to be regulated or otherwise affected by the rule. (3) The draft rule is hereby incorporated into these findings.

Thomas W. Easterly Commissioner Indiana Department of Environmental Management

REQUEST FOR PUBLIC COMMENTS This notice requests the submission ofcomments on the draft rule language, including suggestions for specific revisions to language to be contained in the rule. Mailed comments should be addressed to: #08-5(APCB) CAIR Amendments Susan Bem Mall Code 61-50 c/o Administrative Assistant Rules Development Section Office ofAir Quality Indiana Department of Environmental Management 100 North Senate Avenue Indianapolis, Indiana 46204 Hand delivered comments will be accepted by the receptionist on duty at the tenth floor east reception desk, Office ofAir Quality, 100 North Senate Avenue, Indianapolis, Indiana. Comments may be submitted byfacsimile atthe IDEM fax number: (317) 233-2342, Mondaythrough Friday, between 8:15 a.m. and 4:45 p.m. Please confirm the timely receipt offaxed comments by calling the Rules Section at (317) 233-0426.

COMMENT PERIOD DEADLINE Comments must be postmarked, faxed, or hand delivered by February 22, 2008. Additional information regarding this action may be obtained from Susan Bem, Rules Development Section, Office ofAir Quality, (317) 233-5697 or (800) 451-6027 (in Indiana).

DRAFT RULE

SECTION 1. 326 lAC 24-1-2 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-1-2 Definitions Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-11-2; IC 13-15; IC 13-17

Sec. 2. For purposes ofthis rule, the definition given for a term in this rule shall control in any conflict between 326 lAC 1-2 and this rule. In addition to the definitions provided in IC 13-11-2 and 326 lAC 1-2, the following definitions applythroughout this rule, unless expressly stated otherwise or unless the context clearly implies otherwise: (1) "Account number" means the identification number given by the U.S. EPA to each CAIR NO allowance tracking system account. x (2) "Acid rain emissions limitation" means a limitation on emissions of sulfurdioxide or nitrogen oxides under the acid rain program. (3) "Acid rain program" means a multistate sulfurdioxide and nitrogen oxides air pollution control and emission reduction program established by the U.S. EPA underTitle IVofthe Clean AirAct and 40 CFR Parts 72 through 78'. (4) "Allocate" or"allocation" means, with regard to CAIR NO allowances, the determination by a permitting authorityorthe U.S. EPAofthe amount of such CAIR NO allowances to be initiallycredited to a CAIR NO unit, a new unitset-side, an energy efficiency or renewablg energyset-aside, orother entity. x (5) "Allowance transferdeadline" means, for acontrol period, midnight of March 1 (if it is a business day), or midnight ofthe first business daythereafter (if March 1 is not a business day), immediately following the control period, and is the deadline bywhich aCAIR NO allowance transfer must be submitted for recordation in a CAIR NO source's compliance account in ordertobe used to meetthe source's CAIR NO emissions limitation for s'Lch control period in accordance with section 9(i) and 9U) ofthis rule. x

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 3Indiana Register (6) "Alternate CAIR designated representative" means, for a CAIR NO source and each CAIR NO unit atthe
source, the natural person who is authorized bythe owners and operafors ofthe source and all sua, units at the source, in accordance with sections 

### 6 through 12 ofthis rule, to act on behalfofthe CAIR designated representative in matters pertaining to the CAIR NO annual trading program. Ifthe CAIR NO source is also a CAIR S02 source, then this natural person shall be/he same person as the alternate CAIR

### d~signated representative underthe CAIR S02 trading program. Ifthe CAIR NO source is also a CAIR NO ozone
season source, then this natural person shall be the same person as"the alternate CAIR design§ted representative underthe CAIR NO ozone season trading program. Ifthe CAIR NO source is also subject to the acid rain program, then this na{ural person shall be the same person as the

### alte~nate designated representative underthe acid rain program. Ifthe CAIR NO source is also subjectto the mercury bUdget trading program, then this natural person shall be the samexperson as the alternate mercurydesignated representative underthe mercury budget trading program, (7) "Automated data acquisition and handling system" or "DAHS" means that component ofthe continuous emission monitoring system, orotheremissions monitoring system approved for use undersection 11 ofthis rule, designed to interpret and convert individual output signals from pollutant concentration monitors, flow monitors, diluent gas monitors, and othercomponent parts ofthe monitoring system to produce acontinuous record ofthe measured parameters in the measurement units required by section 11 ofthis rule, (8) "Biomass" means any ofthe following:

(A) Organic material grown forthe purpose of being converted to energy. (B) Organic byproduct ofagriculture that can be converted into energy. 

### (e) Material that:

(i) can be converted into energy and is nonmerchantable for other purposes; (ii) is segregated from other nonmerchantable material; and 

### (iii) is:

(AA) a forest-related organic residue, including mill residues, precommercial thinnings, slash, brush, or byproduct from conversion oftrees to merchantable material; or (BB) a 

### wood material, including pallets, crates, dunnage, manufacturing and construction materials (otherthan pressure-treated; chemically-treated, or painted wood products), and landscape or right-of-way trimmings. 

## t3t (9) "Boiler" means an enclosed fossil- orother-fuel-fired combustion device used to produce heat and to transfer heatto recirculating water, steam, orother medium. 

## f9t (10) "Bottoming-cycle cogeneration unit" means a cogeneration unit in which the energy inputto the unit is first used to produce useful thermal energy and at least some ofthe reject heatfrom the useful thermal energy application or process is then used for electricity production. 

### fW1 (11) "CAIR authorized account representative" means. with regard to a general account, a responsible natural person who is authorized, in accordance with sections 6, 9, and 12 ofthis rule, to transfer and otherwise dispose ofCAIR NO allowances held in the general account and, with regard to a compliance account, the CAIR designated

### ~epresentative ofthe source, 

## fHl (12) "CAIR designated representative" means, for a CAIR NO source and each CAIR NO unit atthe
source, the natural person who is authorized bythe owners and op'erators ofthe source and alfsuch units at the source, in accordance with sections 6 and 12 ofthis rule, to represent and legally bind each ownerand operator in matters pertaining to the CAIR NO annual trading program. Ifthe CAIR NO source is also a CAIR S02.,source, then this natural person shall be /he same person as the CAIR designatedXrepresentative under the t;AIR S02 trading program. Ifthe CAIR NO source is also a CAIR NO ozone season source, then this natural person shall be the same person as theXCAIR designated represenlative underthe CAIR NO ozone
season trading program, Ifthe CAIR NO source is also subjectto the acid rain program, then this n§tural person shall be the same person as the aesignated representative underthe acid rain program, Ifthe CAIR NO source is also subject to the mercury budgettrading program, then this natural person shall be the same

### per~on as the mercurydesignated representative underthe mercury budgettrading program. 

### (421 (13) "CAIR NO allowance" means a limited authorization issued by a permitting authority orthe U.S, EPA under provisions of'll state implementation plan that are approved under

### 40 CFR 51.123(0)(1), 

### 40 CFR 51.123(0)(2), or

### 40 CFR 51.123(p)', or under

### 40 CFR 97', to emit one (1) ton of nitrogen oxides during a controi period ofthe specified calendaryearforwhich the authorization is allocated orofany calendar year thereafter underthe CAIR NO program. An authorization to emit nitrogen oxides that is not issued under provisions ofa state implemen"tation plan that are approved under

### 40 CFR 51.123(0)(1), 

### 40 CFR 51.123(0)(2),

or

### 40 CFR 51.123(p)', or under

### 40 CFR 97' shall not be a CAIR NO allowance. 

## f4a1 (14) "CAIR NO allowance deduction" or "deduct CAIR NO allo'Wances" means the permanent withdrawal of CAIR

## 'No allowances bythe U.S. EPA from a cofupliance account, for example, in orderto accountfor a specified

### ~umber oftons oftotal nitrogen oxides emissions from all CAIR NO units at a CAIR NO source for a control period, determined in accordance with section 11 ofthis rule, orto X

accountfor excess

### em~sions.

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR·326080005FDA Page 4Indiana Register 

## f-141 (15) "CAIR NO allowances held" or "hold CAIR NO allowances" means the CAIR NO allowances recorded bythe U.S'. EPA, or submitted to the U.S. EPAlor recordation, in accordance withXsections 9, 10, and 12 ofthis rule, in a CAIR NO allowance tracking system account. 

## f4<B (16) "CAIR NO allowance

### tr~cking system" means the system by which the U.S. EPA records allocations, deducti6ns, and transfers of CAIR NO allowances underthe CAIR NO annual trading program. Such allowances will be allocated, held, deducted,xortransferred only as whole allo'Wances. 

## f4<B (17) "CAIR NO allowance tracking system account" means an account in the CAIR NO allowance tracking system est§blished by the U.S. EPAfor purposes ofrecording the allocation, holding, transferring, or deducting ofCAIR NO allowances. 

### f4+1 (18) "CAIR NO aAnual trading program" means a multistate nitrogen oxides air pollution control and emission reduction program approved and administered bythe U.S. EPA in accordance with this rule; 40 CFR 96, Subparts AAthrough II" and 40 CFR 51.123'; orestablished bythe U.S. EPA in accordance with 40 CFR 97, Subparts AAthrough II' and 40 CFR 51.123(p)' and 40 CFR 52.35', as a means of mitigating interstate transport offine particulates and nitrogen oxides. 

### (481 (19) "CAIR NO emissions limitation" means, for a CAIR NO source, the tonnage equivalent, in NO emissions in a contfol period, ofthe CAIR NO allowances available for deduction forthe source under

### s~ction 9(i) and 9U)(1) ofthis rule forthe control

### perio~. 

## t+97 (20) "CAIR NO ozone season source" means a source that is subjectto the CAIR NO ozone season 

### t d· x x ra Ing program. (21) "CAIR NO ozone season trading program" means a multistate nitrogen oxides air pollution control and emission reductton program approved and administered bythe U.S. EPA in accordance with 326 lAC 24- 

### ;1.; 40 CFR 96, Subparts AAAA through 1111' and 40 CFR 51.123'; orestablished by the U.S. EPA in accordance with 40 CFR 97, Subparts AAAA through IIII' and 40 CFR 51.123(ee)'and 40 CFR 52.35', as a
means ofmitigating interstate transport ofozone and nitrogen oxides. 

### (22) "CAIR NO source" means a source that is subject to the CAIR NO annual trading program. (23) "CAIR NOxunit" means a unitthat is subjectto the CAIR NO

### annu~1 trading program undersection 1 ofthis rule and,

### e~cept for purposes ofsections 3 and 8 ofthis rule, § CAIR NO opt-in unit undersection 12 ofthis rule. x 

### (24) "CAIR permit" means the legally binding and federally enforceable written document, or portion of such document, issued by the department undersection 7ofthis rule, including any permit revisions, specifying the CAIR NO annual trading program requirements applicable to a CAIR NO source, to each CAIR NOxunit atthe soDrce, and to the owners and operators and the CAIR designateJrepresentative ofthe

source and each such unit. 

## t241 (25) "CAIR S02 source" means a source that is subject to the CAIR S02 trading program. 

## f2lB (26) "CAIR S02 trading program" means a multistate sulfurdioxide air pollution control and emission reduction program approved and administered bythe U.S. EPA in accordance with 326 lAC 24-2; 40 CFR 96, Subparts AAA through III' and 40 CFR 51.124'; orestablished in accordance with 40 CFR 97, Subparts AAA through III and 40 CFR 51.124(r)' and 40 CFR 52.36', as a means ofmitigating interstate transport offine particulates and sulfurdioxide. 

## f2lB (27) "Coal" means any solid fuel classified as anthracite, bituminous, subbituminous, or lignite. 

## t:Y7 (28) "Coal-derived fuel" means any fuel, whether in a solid, liquid, orgaseous state, produced by the mechanical, thermal, orchemical processing of coal. 

## f281 (29) "Coal-fired" means: (A) exceptfor purposes of section 8 ofthis rule, combusting any amount ofcoal orcoal-derived fuel, alone

or in combination with any amount of any otherfuel, during any year; or (B) for purposes ofsection 8 ofthis rule, combusting any amount ofcoal or coal-derived fuel, alone or in combination with any amount ofany otherfuel, during a specified year. 

## t291 (30) "Cogeneration unit" means a stationary, fossil-fuel-fired boilerorstationary, fossil-fuel-fired combustion turbine: (A) having equipment used to produce electricityand useful thermal energy for industrial, commercial, heating, orcooling purposes through the sequential use of energy; 

### afl4 (B) producing during the twelve (12) month period starting on the date the unitfirst produces electricity and during any calendaryear afterthe calendar year in which the unit first produces electricity:

(i) for atopping-cycle cogeneration unit:

(AA) useful thermal energy not less than five percent (5%) oftotal energy output; and (BB) useful powerthat, when added to one-half (IS) of useful thermal energy produced, is not less than forty-two and one-half percent (42.5%) oftotal energy input, if useful thermal energy produced is fifteen percent (15%) or more oftotal energy output, or not less than forty-five percent (45%) oftotal energy input, if useful thermal energy produced is less than fifteen percent (15%) oftotal energyoutput; and (ii) for a bottoming-cycle cogeneration unit, useful power not less than forty-five percent (45%) oftotal energy input; and

Date: Jun 26,2009 9:29:21AM EDT DIN: 200S0123-IR-3260S0005FDA Page 5Indiana Register 

### (e) provided thatthe total energy input underclause (B)(I)(BB) and (B)(Ii) shall equal the unit'stotal energy inputfrom all fuel except biomass ifthe unit is a boiler. 

### (6Gf(31) "Combustion turbine" means: (A) an enclosed device comprising a compressor, a combustor, and a turbine and in which the flue gas resulting from the combustion offuel in the combustor passes through the turbine, rotating the turbine; and (8) ifthe enclosed device underclause (A) is combined cycle, any associated duct burner, heat recovery steam generator, and steam turbine. (32) "Commence commercial operation" means, with regard to a unit, the following: (A) To have begun to produce steam, gas, orother heated medium used to generate electricityfor sale or use, including test generation, except as provided in sections 3and 12(1)(10) ofthis rule, subjectto the following:

(i) Fora unitthat is a CAIR NO unit undersection 1 ofthis rule on the laterof November 15, 1990, orthe date the unit commences comrhercial operation as defined in this clause and that subsequently undergoes

a physical change (otherthan replacement ofthe unit by a unit at the same source) such date shall remain the date of commencement ofcommercial operation ofthe unit, which shall continue to be treated as the

same unit. 

### (ii) Fora unitthat is a CAIR NO unit undersection 1 ofthis rule on the laterof November 15, 1990, orthe date the unit commences comri{ercial operation as defined in this clause and that is subsequently replaced by a unit atthe same source (for example, repowered), such date shall remain the replaced unit's date of commencement ofcommercial operation, and the replacement unit shall be treated as a separate unitwith

a separate date for commencement ofcommercial operation as defined in this clause orclause (B) as appropriate. (8) Notwithstanding clause (A) and except as provided in section 3ofthis rule, for a unitthat is not a CAIR NO unit undersection 1 ofthis rule on the laterof November 15,1990, orthe date the unit commences cori{mercial operation as defined in clause (A), the unit's date for commencement ofcommercial operation shall be the date on which the unit becomes a CAIR NO unit under section 1 ofthis rule, subjectto the following: x

(i) Fora unitwith a date for commencement ofcommercial operation as defined in this clause and that subsequently undergoes a physical change (otherthan replacement ofthe unit by a unit atthe same source) such date shall remain the date ofcommencement ofcommercial operation ofthe unit. which shall continue to be treated as the same unit. 

### (ii) Fora unitwith adate for commencement ofcommercial operation as defined in this clause and that is subsequently replaced by a unit atthe same source (for example, repowered), such date shall remain the replaced unit's date of commencement of commercial operation, and the replacement unit shall be treated

as a separate unitwith a separate date for commencement ofcommercial operation as defined in this clause orclause (A), as appropriate.

(33) "Commence operation" means the following: (A) To have begun any mechanical, chemical, orelectronic process, including, with regard to a unit, start-up ofa unit's combustion chamber, except as provided in section 12(f)(10) ofthis rule. (8) Fora unitthat undergoes a physical change (otherthan replacement ofthe unit by a unit atthe same source) afterthe date the unit commences operation as defined in clause (A), such date shall remain the date ofcommencement of operation ofthe unit, which shall continue to be treated as the same unit. (C) Fora unitthat is replaced by a unit atthe same source (forexample, repowered) afterthe date the unit

commences operation as defined in clause (A), such date shall remain the replaced unit's date of commencement, and the replacement unit shall be treated as a separate unitwith a separate date for commencement ofoperation as defined in this clause orclause (A) or (8), as appropriate, except as provided in section 12(f)(10) ofthis rule. (34) "Common stack" means a single flue through which emissions from two (2) or more units are exhausted. (35) "Compliance account" means a CAIR NO allowance tracking system account, established by the U.S. EPAfor a CAIR NO source undersection 9 o} 12 ofthis rule, in which any CAIR NO allowance allocations forthe CAIR

# Kio units atthe source are initially recorded and in which are helJ any CAIR NO allowances available for use"fora control period in orderto meetthe source's CAIR NO emissions IimitatTon in accordance with section 9(i) and 9G) ofthis rule. x 

## f6&l (36) "Continuous emission monitoring system" or "CEMS" means the equipment required under section 11 ofthis rule to sample, analyze, measure, and provide, by means of readings recorded at least once every fifteen (15) minutes, using an automated data acquisition and handling system (DAHS), a permanent record of nitrogen oxides emissions, stack gas volumetricflow rate, stack gas moisture content, and oxygen orcarbon dioxide concentration, as applicable, in a manner consistent with 40 CFR 75". The following systems are the principal types of continuous emission monitoring systems required undersection 11 ofthis rule: (A) a flow monitoring system, consisting ofa stackflow rate monitorand an automated data acquisition and

Dale: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR·326080005FDA Page 6Indiana Register handling system and providing a permanent, continuous record ofstack gas volumetric flow rate, in standard cubic feet per hour (scth); (B) a nitrogen oxides concentration monitoring system, consisting ofa NO pollutant concentration monitor and an automated data acquisition and handling system and providing a p'ilrmanent, continuous record of NO, emissions, in parts per million (ppm); (C) a nitrogen oxides emission rate (or NO -diluent) monitoring system, consisting ofa NO pollutant concentration monitor, a diluent gas (C0 2 6r02) monitor, and an automated data acquisiti6n and handling system and providing a permanent, continuous record of NO concentration, in parts per million (ppm), diluent gas concentration, in percent CO2or02' and NO

### em~ssion rate, in pounds per million British thermal units (lb/MMBtu);

, (D) a moisture monitoring system, as defined in 40 CFR 75.11 (b)(2)" and providing a permanent, continuous record ofthe stack gas moisture content, in percent H2 0; (E) a carbon dioxide monitoring system, consisting ofa CO2pollutant concentration monitor, oran oxygen monitor plus suitable mathematical equations from which the CO2concentration is derived, and an automated data acquisition and handling system and providing a permanent, continuous record ofCO emissions, in percent CO2; and 2 (F) an oxygen monitoring system, consisting ofan 02 concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of 02' in percent 02' (37) "Control period" means the period beginning January 1 ofa calendar year, except as provioed in section 4(c)(2) ofthis rule, and ending on December31 ofthe same year, inclusive. Forthe purposes of section 8(h) ofthis rule, control period means January 1 through April 30 and October 1 through December31 ofthe same calendaryear. (38) "Emissions" means air pollutants exhausted from a unit orsource into the atmosphere, as measured, recorded, and reported to the U.S. EPA by the CAIR designated representative and as determined bythe U.S. EPA in accordance with section 11 ofthis rule. (39) "Energy efficiency or renewable energy projects" means any ofthe following implemented in Indiana: (A) End-use energy efficiency projects, including demand-side management programs. (B) Highly efficient electricity orsteam generation for the predominant use of a single end user, such as combined cycie, combined heat and power, microturbines, and fuel cell systems. In orderto be considered

as highly efficient electricity generation underthis clause, combined cycle, combined heat and power, microturbines, and fuel cell generating systems must meet or exceed one (1) ofthe following thresholds:

(i) Forcombined heat and power projects generating both electricity and thermal energyfor space, water,

or industrial process heat, rated energy efficiency ofsixty percent (60%). (iI) For microturbine projects rated at or belowfive hundred (500) kilowatts generating capacity, rated energy efficiency offorty percent (40%). (iii) Forcombined cycle projects rated at greaterthan five hundred (500) kilowatts, rated energy efficiency offifty percent (50%). (iv) Forfuel cell systems, rated energy efficiency offorty percent (40%), whether or notthe fuel cell system is part ofa combined heat and power energy system. (C) Zero-emission renewable energy projects, including wind, photovoltaic, solar, and hydropower projects. Eligible hydropower projects are restricted to systems employing a head often (10) feet or less orsystems employing a head greaterthan ten (10) feet that make use ofa dam that existed before September 16, 2001. (D) Energy efficiency projects generating electricitythrough the capture of methane gas from municipal solid waste landfills, watertreatment plants, sewage treatment plants, oranaerobic digestion systems operating

on animal or plant wastes. (E) The installation of highly efficient electricity generation equipment forthe sale ofpowerwhere such equipment replaces ordisplaces retired electrical generating units. In orderto be considered as highly efficient underthis clause, generation equipment must meet or exceed the following energy efficiency thresholds:

(i) Forcoal-fired electrical generation units, rated energy efficiency offorty-two percent (42%). (iI) For natural gaS-fired electrical generating units, rated energy efficiency offifty percent (50%). (F) Improvements to existing fossil fuel-fired electrical generation units that increase the efficiency ofthe unit and decrease the heat rate used to generate electricity, including gas reburning projects that reduce NO 

### emissions. x (G) The installation of integrated gasification combined cycle equipment for producing electricity for sale. (H) Renewable energy projects that displace some portion ofthe combustion ofcoal, natural gas, oroil' through the use of solar energy or methane from landfills, watertreatment plants, sewage treatment plants,

oranaerobic digestion systems on animal or plant wastes and reduce NO emissions. Energy efficiency or renewable energy projects do not include nuclear

### powe~ projects. This definition is solely for the purposes of implementing this rule and does not apply in other contexts.

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## f391 (40) "Excess emissions" means anyton of nitrogen oxides emitted bythe CAIR NO units at a CAIR NO

source during a control period that exceeds the CAIR NO emissions limitation forthe s6urce. x 

## t4G1 (41) "FESOP" means a federally enforceable state operating permit issued under 326 lAC 2-8. 

### (4+l (42) "Fossil fuel" means natural gas, petroleum, coal, oranyform ofsolid, liquid, orgaseous fuel derived from such material. 

## \4i!1 (43) "Fossil-fuel-fired" means, with regard to a unit, combusting any amount offossil fuel in any calendar year.(44) "Fuel oil" means any petroleum-based fuel (including diesel fuel or petroleum derivatives such as oil tar) and any recycled or blended petroleum products or petroleum byproducts used as a fuel whether in a liquid, solid, orgaseous state. 

### (4+l (45) "General account" means a CAIR NO allowance tracking system account, established undersection 9 ofthis rule, that is not a compliance account. x 

### (461 (46) "Generator" means a device that produces electricity. 

### (461 (47) "Gross electrical output" means, with regard to a cogeneration unit, electricity made available for use, including any such electricity used in the power production process. This process may inclUde, but is not limited to, anyon-site processing ortreatment offuel combusted atthe unit and anyon-site emission controls. 

### (4+7 (48) "Heat input" means, with regard to a specified period oftime, the product, in million British thermal units per unit oftime (MMBtu/time) ofthe gross calorific value ofthe fuel, in British thermal units per pound (Btu/lb), divided by one million (1,000,000) British thermal units per million British thermal units (Btu/MMBtu) and multiplied bythe fuel feed rate into acombustion device, in pounds offuel per unit oftime (Ib offuel/time),

as measured, recorded, and reported to the U.S. EPA by the CAIR designated representative and determined by the U.S. EPA in accordance with section 11 ofthis rule and excluding the heat derived from preheated combustion air, recirculated flue gases, or exhaust from othersources. 

### (481 (49) "Heat input rate" means the amount ofheat input, in million British thermal units (MMBtu), divided by unit operating time, in hours, or, with regard to a specific fuel, the amount of heat input attributed to the fuel, in million British thermal units (MMBtu), divided by the unit operating time, in hours, during which the unit combusts the fuel. 

## t4G1 (50) "Life-of-the-unit, firm powercontractual arrangement" means a unit participation powersales agreement underwhich a utility or industrial customer reserves, or is entitled to receive, a specified amount or percentage ofnameplate capacity and associated energy generated by any specified unit and pays its proportional amount ofsuch unit'stotal costs, pursuantto acontract:

(A) forthe life ofthe unit; (B) for a cumulative term of no less than thirty (30) years, including contracts that permit an election for early termination; or (C) for a period no less than twenty-five (25) years orseventy percent (70%) ofthe economic useful life of the unit determined as ofthe time the unit is built, with option rights to purchase or release some portion of the nameplate capacity and associated energy generated bythe unit atthe end ofthe period. 

## \6Gt (51) "Maximum design heat input" means the maximum amount offuel per hour, in British thermal units per hour (Btu/hr), that a unit is capable of combusting on a steady state basis as ofthe initial installation ofthe unit as specified by the manufacturerofthe unit. 

## f&B (52) "Mercury (Hg) budget trading program" means a multistate Hg air pollution control and emission reduction program approved and administered bythe U.S. EPA in accordance with 40 CFR 60, Subpart HHHH' and 40 CFR 60.24(h)(6)', orestablished by the U.S. EPA underthe Clean AirAct, Section 111, as a
means of reducing national mercury emissions. 

## \627 (53) "Monitoring system" means any monitoring system that meets the requirements ofsection 11 ofthis rule, including a continuous emissions monitoring system, an alternative monitoring system, oran excepted monitoring system under40 CFR 75'. (54) "Most stringent state orfederal NO emissions limitation" means, with regard to a unit, the lowest NOx emissions limitation, in terms of pounds"per million British thermal units (lb/MMBtu), that is applicable to the unit under state orfederal law, regardless ofthe averaging period to which the emissions limitation applies. 

## f&41 (55) "Nameplate capacity" means, starting from the initial installation ofa generator, the maximum electrical generating output, in megawatt electrical (MWe), that the generator is capable of producing on a steady state basis and during continuous operation (when not restricted byseasonal orotherderatings) as of such installation as specified by the manufacturerofthe generatoror, starting from the completion ofany subsequent physical change in the generator resulting in an increase in the maximum electrical generating output, in megawatt electrical (MWe), that the generator is capable of producing on a steady state basis and during continuous operation (when not restricted by seasonal orotherderatings) such increased maximum amount as of such completion as specified by the person conducting the physical change. 

## tee1 (56) "Oil-fired" means, forthe purposes ofsection 8 ofthis rule, combusting fuei oil for more than fifteen percent (15%) ofthe annual heat input in a specified year and not qualifying as coal-fired. 

## tee1 (57) "Operator" means any person who operates, controls, orsupervises a CAIR NO unit ora CAIR NO
x x

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source and shall include, but not be limited to, any holding company, utility system, or plant managerof such a unit or source. 

### ({>71 (58) "Owner" means any ofthe following persons: (A) With regard to a CAIR NO source ora CAIR NO unit at a source, respectively, any ofthe following:

(i)

### eAY Holderofany portion

### ~f the legal orequitabl€titlein a CAIR NO unit at the source orthe CAIR NO unit. x x (Ii)

### eAY Holderofa leasehold interest In a CAIR NO unit at the source or the CAIR NO unit. 9f (iii) 

### eAY Purchaserofpowerfrom a CAIR NO unit a1 the source orthe CAIR NO unit J'ndera life-of-the-unit, firm powercontractual

### arrang~ment; provided that, unless expreisly provided for in a leasehold agreement, owner shall not include a passive lessor, or a person who has an equitable interest through such lessor, whose rental payments are not based, either directly or indirectly, on the revenues or income from such CAIR NO unit. 9f (B) With regard to any gene"\'1 account, any person who has an ownership interest with respect to the CAIR NO allowances held in the general account and who is subject to the binding agreement forthe CAIR

### aut~orized account representative to represent the person's ownership interest with respect to CAIR NO allowances. x 

## teB1 (59) "Permitting authority" means the state air pollution control agency, local agency, other state agency,
or otheragency authorized by the U.S. EPAto issue or revise permits to meet the requirements ofthe CAIR NO annuai trading program iA assareaAse witA sestieA 7 sftAis**r~le** or, if no such agency has been so autAorized, the U.S. EPA. 

## t691 (60) "Potential electrical output capacity" means thirty-three percent (33%) ofa unit's maximum design heat input, divided bythree thousand four hundred thirteen (3,413) Btu/kilowatt hour, divided by one thousand (1,000) kilowatt hour/megawatt hour, and multiplied by eight thousand seven hundred sixty (8,760) hours/year. 

## t6G1 (61) "Rated energy efficiency" means the percentage of gross energy inputthat is recovered as useable net energy output in the form ofelectricity orthermal energy, or both, that is used for heating, cooling, industrial processes, or other beneficial uses as follows: (A) For electric generators, rated energy efficiency is calculated as one (1) net kilowatt hour (three thousand four hundred twelve (3,412) British thermal units) ofelectricity divided bythe unit's design heat rate using the higher heating value ofthe fuel. (B) Forcombined heat and power projects, rated energy efficiency is calculated using the following formula: Eff% 

### = (NEO 

### + UTO)/GEI

Eff% NEO UTO 

### = Rated energy efficiency.



### = Net electrical output ofthe system converted to British thermal units per unit oftime.



### = Utilized thermal output orthe energy value in British thermal units ofthermal energy from the system that is used for heating, cooling, industrial processes, or other beneficial uses, per

. unit oftime. GEl 

### = Gross energy input, based upon the higher heating value offuel, per unit oftime. 

## t&B (62) "Receive" or "receipt of' means, when referring to the department or U.S. EPA, to come into possession ofa document, information, or correspondence, whether sent in hard copy or by authorized electronictransmission, as indicated in an official log, or by a notation made on the document, information, or correspondence, bythe department or U.S. EPA in the regular course of business. 

## t6i!t (63) "Recordation", "record", or "recorded" means, with regard to CAIR NO allowances, the movement of CAIR NO allowances bythe U.S. EPA into or between CAIR NO allowance

### tr~cking system accounts, for purposesxofallocation, transfer, or deduction. x 

## t631 (64) "Reference method" means any directtest method of sampling and analyzing for an air pollutant as specified in 40 CFR 75.22*. 

## f641 (65) "Replacement", "replace", or"replaced" means, with regard to a unit, the demolishing of a unit, orthe permanent shutdown and permanent disabling ofa unit, and the construction of another unit (the replacement unit) to be used instead ofthe demolished or shutdown unit (the replaced unit). 

## t6&1 (66) "Repowered" means, with regard to a unit, replacement of a coal-fired boilerwith one (1) ofthe following coal-fired technologies at the same source as the coal-fired boiler: (A) atmospheric or pressurized fiuidized bed combustion; (B) integrated gasification combined cycle; (C) magnetohydrodynamics; (D) direct and indirect coal-fired turbines; (E) integrated gasification fuel cells; or (F) as determined bythe U.S. EPA in consultation with the Secretary of Energy, a derivative ofone (1) or
more of the technologies underclauses (A) through (E) and any other coal-fired technology capable of controlling multiple combustion emissions simultaneously with improved boileror generation efficiency and with significantly greaterwaste reduction relative to the performance of technology in widespread Where:

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 9Indiana Register
commercial use as ofJanuary 1, 2005. 

### (661 (67) "Sequential use ofenergy" means; (A) for atopping-cycle cogeneration unit, the use of reject heatfrom electricity production in a useful thermal energy application or process; or (8) for a bottoming-cycle cogeneration unit, the use of reject heatfrom useful thermal energy application or process in electricity production. (68) "Serial number" means, for a CAIR NO allowance, the unique identification numberassigned to each CAIR NO allowance bythe U.S. EPA. x 

## t681 (69) "Solid"waste incineration unit" means a stationary; fossil-fuel-fired boileror stationary, fossil-fuel-fired combustion turbine that is a solid waste incineration unit as defined in the Clean AirAct, Section 129(g)(1). 

## t691 (70) "Source" means all buildings, structures, or installations located in one (1) or more contiguous or adjacent properties undercommon control ofthe same person or persons. For purposes of Section 502(c) of the Clean AirAct, a source, including a source with multiple units, shall be considered a single facility. 

## f7G1 (71) "Submit" or "serve" means to send ortransmit a document, information, orcorrespondence to the person specified in accordance with the applicable rule;

(A) in person; (8) by United States Postal Service; or (C) by other means ofdispatch ortransmission and delivery. Compliance with any submission orservice deadline shall be determined by the date of dispatch, transmission, or mailing and notthe date of receipt bythe department or U.S. EPA. 

## f7+J (72) "Title V operating permit" or "Part 70 operating permit" means a permit issued under326 lAC 2-7. 

### fh!1 (73) "Title V operating permit regulations" or "Part 70 operating permit regulations" means the rules under 326 lAC 2-7. 

## f+31 (74) "Ton" means two thousand (2,000) pounds. Forthe purpose cifdetermining compliance with the CAIR NO emissions limitation, total tons of nitrogen oxides emissions for a control period shall be calculated

as the suA, ofall recorded hourly emissions, orthe mass equivalent ofthe recorded hourly emission rates, in accordance with section 11 ofthis rule, but with any remaining fraction of a ton equal to or greater than fifty-hundredths (0.50) tons deemed to equal one (1) ton and any remaining fraction of a ton less than fifty-hundredths (0.50) tons deemed to equal zero (0) tons. 

## t+41 (75) "Topping-cycle cogeneration unit" means a cogeneration unit in which the energy inputto the unit is first used to produce useful power, including electricity, and at least some ofthe reject heat from the electricity production is then used to provide useful thermal energy. 

### f761 (76) "Totai energy input" means, with regard to a cogeneration unit, total energy ofall forms supplied to the cogeneration unit, excluding energy produced by the cogeneration unit itself. Each form ofenergy supplied shall be measured by the lower heating value ofthat form ofenergy calculated as follows: LHV

# =HHV - 10.55(W 

### + 9H)

Where: LHV 

### = Lower heating value offuel in Btu/hr. HHV 

### = Higher heating value offuel in Btu/hr, W 

### = Weight % of moisture in fuel. H 

### = Weight 

### % of hydrogen in fuel. 

### f761 (77) "Total energy output" means, with regard to a cogeneration unit, the sum of useful powerand useful thermal energy produced by the cogeneration unil. 

## fFA (78) "Unit" means a stationary, fossil-fuel-fired boiler orcombustion turbine orotherstationary, fossil-fuel-fired combustion device. 

### f7&) (79) "Unit operating day" means a calendar day in which a unit combusts any fuel. 

## f7G1 (80) "Unit operating hour" or "hourof unit operation" means an hour in which a unit combusts any fuel. 

## f891 (81) "Useful power" means, with regard to a cogeneration unit, electricity or mechanical energy made available for use, excluding any such energy used in the power production process, which process includes, but is not limited to, anyon-site processing ortreatment offuel combusted at the unit and anyon-site emission controls. 

### {&1-l (82) "Useful thermal energy" means, with regard to a cogeneration unit, thermal energythat is: (A) made available to an industrial orcommercial process, not a power production process, excluding any heat contained in condensate return or makeup water; (8) used in a heating application (for example, space heating ordomestic hot water heating); or (C) used in a space cooling application (that is, thermal energy used by an absorption chiller). 

## f821 (83) "Utility powerdistribution system" means the portion of an electricity grid owned oroperated by a utility and dedicated to delivering electricity to customers.

"These documents are incorporated by reference. Copies may be obtained from the Government Printing

Dale: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 10Indiana Register

Office, 732 North Capitol Street NW, Washington, D.C. 20401 orare available for review and copying atthe Indiana Department of Environmental Management, Office ofAir Quality, Indiana Government Center-North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204. (AirPoilution ControlBoard; 326 lAC24-1-2; filedJan 26,2007, 10:25a.m.: 20070221-IR-326050117FRA: errata filedJan 29,2007,2:43p.m.: 20070221-IR-326050117ACAI

SECTION 2. 326 lAC 24-1-7 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-1-7 Permit requirements 

### Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-15; IC 13-17

Sec. 7. (a) Foreach CAIR NO source required to have a federally enforceable permit, the permit shall include

a CAIR permit administered by

### th~ department as follows: (1) ForCAIR NO sources required to have a Part 70 operating permit under 326 lAC 2-7, the CAIR portion of the Part 70 opera"ting permit shall be administered in accordance with 326 lAC 2-7, except as provided otherwise by this section and sections 3and 12 ofthis rule. (2) ForCAIR NO sources required to have a FESOP under 326 lAC 2-8, the CAIR portion ofthe FESOP shall be administered (n accordance with 326 lAC 2-8, except as provided otherwise bythis section and sections 3 and 12 ofthis rule. (3) Each CAIR permit, including a draftor proposed CAIR permit, ifapplicable, shall contain, with regard to the CAIR NO source and the CAIR NO units atthe source covered bythe CAIR permit, all applicable CAIR NO annual triding program, CAIR NO ,hone season trading program, and CAIR SO trading program ' requirements and shall be a comp(ete and separable portion ofthe Part 70 operatTng permit or FESOP.

(b) Requirements forthe submission of CAIR permit applications are as follows: (1) The CAIR designated representative ofany CAIR NO source required to have a Part 70 operating permit

or FESOP shall submitto the department a complete CAlR permit application under subsection (c) forthe

source covering each CAIR NO unit atthe source at least two hundred seventy (270) days before the laterof January 1,2009, orthe date on'which the CAIR NO unit commences commercial operation, except as provided in section 12(e) ofthis rule. ' (2) Fora CAIR NO source required to have a Part 70 operating permit or FESOP, the CAIR designated representative

### sha~ submit a complete CAIR permit application undersubsection (c) forthe source covering each CAIR NO unit at the source to renew the CAIR permit in accordance with 326 lAC 2-7-4(a)(1 

### )(0) or 326 lAC 2-8-3(h), a% applicable, except as provided in section 12(e) ofthis rule.

(c) IA assitieA Is IAe requireFfleAls sf32€i I/IG 2 7 4(0) sr 32€i lAG 2 8 3(0), A complete CAIR permit application shall include the following eiements concerning the CAIR NO source forwhich the application is submitted: ' (1) Identification ofthe CAIR NO source. (2) Identification of each CAIR ND unit at the CAIR NO source. (3) The standard requirements undersection 4 ofthis rufe.

(d) IA assilisA Is IAe requireFfleAls uAser 328**L~G** 2 7 sr32€i lAG 2 8, Each CAIR permit shall contain, in a format prescribed bythe department, all elements required for a complete CAIR permit application under subsection (c).

(e) Each CAIR permit is deemed to incorporate automatically the definitions ofterms undersection 2 ofthis rule and, upon recordation by the U.S. EPA under section 8, 9,10, or 12 ofthis rule, every allocation, transfer, or deduction of a CAIR NO allowance to orfrom the compliance account ofthe CAIR NO source covered bythe



# ., 

# , permit.

(f) The initial CAIR permit covering a CAIR unitfor which a complete CAIR permit application is timely submitted undersubsection (b) shall become effective upon issuance.

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(g) The term ofthe CAIR permit shall be set by the department, as necessary to facilitate coordination ofthe renewal ofthe CAIR permit with issuance, revision, or renewal ofthe CAIR NO source's Part 70 operating permit

or FESOP. '

(h) Except as provided in subsection (e), the department shall revise the CAIR permit, as necessary, in accordance with the following: (1) The permit modification and revision provisions under 326 lAC 2-7, for a CAIR source with a Part 70 operating permit. (2) The permit modification and revision provisions under 326 lAC 2-8, for a CAIR source with a FESOP. (AirPollution ControlBoard; 326 lAC 24-1-7: filedJan 26, 2007, 10:25a.m.: 2QQ7Q221-IR-326050117FRAI

SECTION 3. 326 lAC 24-1-8 IS AMENDED TO READ.AS FOLLOWS:

326 lAC 24-1-8 CAIR NO allowance allocations


# , Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-15; IC 13-17

Sec. 8. (a) The trading program budget allocated bythe department under subsections (d) through (h) for each control period shall equal the CAIR NO allowances apportioned to the CAIR NO units undersection 1 ofthis rule, as determined bythe procedures

# tn this section. The total numberof CAIR

## r-:lo allowances that are available for each control period for annual allocations of CAIR NO allowances underthis

### rUI~ are one hundred eight thousand nine hundred thirty-five (108,935) tons in 2009 through 2014 and ninety thousand seven hundred seventy-nine (90,779) in 2015 and thereafter, apportioned as follows: (1) Forexisting units (that is, units that have a baseline heat input, as determined undersubsection (c)(1 

## »: (A) one hundred three thousand four hundred eighty-eight (103,488) tons for CAIR NO units in 2009 

# , through 2014; and (B) eighty-eightthousand fifty-five (88,055) tons for CAIR NO units in 2015 and thereafter. (2) For new unit allocation set-asides: ' (A) fourthousand nine hundred two (4,902) tons forCAIR NO units in 2009 through 2014; and (B) two thousand two hundred seventy (2,2.70) tons for CAIR

### ~O units in 2015 and thereafter. (3) Forthe energy efficiency and renewable energy allocation

### set-a~ides:

(A) five hundred forty-five (545) tons for CAIR NO units in 2009 through 2014; and (B) four hundred fifty-four (454) tons for CAIR NO' units in 2105 and thereafter.


# ,
(b) The department shall allocate CAIR NO allowances to CAIR NO units according to the following schedule: " (1) Within thirty (30) days ofthe effective date ofthis rule, the department shall submitto the U.S. EPA the CAIR NO allowance allocations, in a format prescribed bythe U.S. EPAand in accordance with subsections (c) and 

## (d), forthe control periods in 2009, 2010, 2011, 2012, 2013, and 2014. (2) By October31,2008, and October31 every six (6) years thereafter, the department shall submitto the U.S. EPAthe CAIR NO allowance allocations, in a format prescribed bythe U.S. EPAand in accordance with subsections (c) and (d),'forthe control periods seven (7), eight (8), nine (9), ten (10), eleven (11), and twelve (12) years afterthe year ofthe allowance allocation. (3) By October 31,2009, and October 31 of each yearthereafter, the department shall submitto the U.S. EPA the CAIR NO allowance allocations, in a format prescribed by the U.S. EPAand in accordance with subsections 

### (c), (e), and (I), forthe control period in the year ofthe applicable deadline for submission under this rule. (4) The department shall make available for review to the public the CAIR NO allowance allocations under subdivision (2) on July 31 of each year allocations are made and shali provide'a thirty (30) day opportunity for submission ofobjections to the CAIR NO allowance allocations. Objections shall be limited to addressing whetherthe CAIR NO allowance

### allocati~ns are in accordance with this section. Based on any such objections, the departfuent shall consider any objections and inputfrom affected sources and, ifappropriate, adjust each determination to the extent necessary to ensure that it is in accordance with this section.

(c) The baseline heat input, in million British thermal units (MMBtu) used with respect to CAIR NO allowance allocations undersubsection (d) for each CAIR NO, unit shall be as follows: '

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR·326080005FDA Page 12Indiana Register (1) For units commencing operation before January 1, 2001:

(A) Fora CAIR NO aliowance allocation undersubsection (b)(1), the average ofthe three (3) highest amounts ofthe

### uni~s adjusted controi period heat inputfor 1998 through 2005, with the adjusted control period heat inputfor each year calculated as foliows:

(i) Ifthe unit is coal·fired during the year, the unit's control period heat inputfor such year is multiplied by

one hundred percent (100%). (ii) Ifthe unit is oil·fired during the year, the unit's control period heat inputfor such year is multiplied by sixty percent (60%). (iii) Ifthe unit is not subjectto item (i) or (ii), the unit's control period heat inputfor such year is multiplied by forty percent (40%). (B) Fora CAIR NO aliowance aliocation undersubsection (b)(2), the average ofthe three (3) highest amounts ofthe uniCs adjusted control period heat inputforthe eight (8) years before when the CAIR NO aliocation is being calculated, with the adjusted control period heat inputfor each year calculated as foli6ws:

(i) Ifthe unit is coal·fired during the year, the unit's control period heat inputfor such year is multiplied by

one hundred percent (100%). (ii) Ifthe unit is oil·fired during the year, the unit's control period heat inputforsuch year is multiplied by sixty percent (60%). (iii) Ifthe unit is not subjectto item (i) or (ii), the unit's control period heat inputfor such year is multiplied by forty percent (40%). (2) For units commencing operation on or afterJanuary 1, 2001, and operating each calendar year during a period ofthree (3) or more consecutive calendaryears, the average ofthe three (3) highest amounts ofthe unit's total converted control period heat inputforthe years before when the CAIR NO aliocation is being calculated, notto exceed (8). x (3) A unit's control period heat input, and a unit's status as coal·fired or not coal·fired, for a calendaryear under subdivision (1), and a unit's total tons of NO emissions during a control period in calendar year under subsection (e), shali 

### be determined in accordance\vith 40 CFR 75*, to the extentthe unitwas otherwise subjectto the requirements of40 CFR 75* forthe year, or shall be based on the best available data reported to the departmentforthe unit, to the extentthe unitwas not otherwise subjectto the requirements of40 CFR 75* forthe year. (4) A unit's converted control period heat inputfor a calendaryear undersubdivision (2) equals one (1) ofthe following: (A) The control period gross electrical output ofthe generatoror generators served by the unit multiplied by eight thousand nine hundred (8,900) British thermal units per kilowatt hour (Btu/kWh) for coal·fired units or
seven thousand six hundred (7,600) British thermal units per kilowatt hour (Btu/kWh) for a unitthat is not coal·fired divided by one million (1,000,000) British thermal units per million British thermal units (Btu/MMBtu), provided that ifa generator is served bytwo (2) or more units, then the gross electrical output ofthe generatorshali be attributed to each unit in proportion to the unit's share ofthe total control period heat input ofsuch units forthe year. (B) Fora unitthat has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, orcooling purposes through the sequential use ofenergy, the control period gross electrical output ofthe unit multiplied by eightthousand nine hundred (8,900) British thermal units per kilowatt hour (Btu/kWh) plus the useful energy, in British thermal units (Btu), produced during the control period divided by eight·tenths (0.8), and with the sum divided by one miliion (1,000,000) British thermal units per million British thermal units (Btu/MMBtu).

(d) Foreach control period in 2009 and thereafter, the department shali aliocate to ali CAIR NO units that have a baseline heat input, as determined under subsection (c), atotal amount ofCAIR NO aliow<l'nces as listed in subsection (a)(1), except as provided in subsection (f). The department shali aliocate CAIR. NO aliowances to each CAIR NO unit in an amount determined by multiplying the total amount undersubsection (a)(1) bythe ratio ofthe baseline'heat input ofsuch CAIR NO unit to the total amount of baseline heat input ofali such CAIR NO units and rounding to the nearestwhole ali6wance as appropriate. x

(e) Foreach control period in 2009 and thereafter, the department shali allocate CAIR NO aliowances to CAIR NO units that commenced operation on orafter January 1, 2001, and do not yet have <l' baseline heat input, as aetermined undersubsection (c), in accordance with the foliowing procedures: (1) The department shali establish a new unit set·aside for each control period equal to the foliowing:

(A) Fourthousand nine hundred two (4,902) tons for a control period during 2009 through 2014. (B) Two thousand two hundred seventy (2,270) tons for CAIR NOxunits for acontrol period during 2015 and thereafter. (2) The CAIR designated representative ofsuch a CAIR NO unit may submitto the department a request, in a x

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fonnat specified bythe department, to be allocated CAIR NO allowances, starting with the laterofthe control period in 2009 orthe first control period afterthe control peri6d in which the CAIR NO unit commences commercial operation and until the first control period for which the unit is allocated CAIR NO allowances undersubsection (d). A separate CAIR NO allowance allocation request for each controi perfod forwhich CAIR NO allowances are sought must be §ubmitled on or before May 1 ofsuch control period and afterthe date on w'hich the CAIR NO unit commences commercial operation. (3) In a CAIR NO

### allowanc~ allocation request undersubdivision (2), the CAIR designated representative may request fora"control period CAIR NO allowances in an amount not exceeding the CAIR NO unit's total tons of NO emissions during the calendarXyear immediately before such control period. x (4) The departmentshall review each CAIR NO allowance allocation request undersubdivision (2) and shall allocate CAIR NO allowances for each control period pursuant to such request as follows: (A) The departriientshall accept an allowance allocation request only ifthe request meets, or is adjusted by the department as necessary to meet, the requirements ofsubdivisions (2) and (3). (B) On orafter May 1 ofthe control period, the department shall detennine the sum ofthe CAIR NO allowances requested, as adjusted underclause (A), in all allowance allocation requests accepted uXnder clause (A) forthe control period. (C) Ifthe amount ofCAIR NO allowances in the new unit set-aside forthe control period Is greaterthan or x equal to the sum underclause (B), then the department shall allocate the amount of CAIR NO allowances requested, as adjusted underclause (A), to each CAIR NO unit covered by an allowance allo&.tion request x accepted underclause (A). (D) Ifthe new unit set-aside forthe control period forwhich NO allowances are requested has an amount of NO allowances less than the number requested, as adjusted J'nderclause (A), but the energy efficiency and'renewable energy allocation set-aside is under-subscribed, the department shall allocate the amount of the NO allowances requested with the difference allocated from the energy efficiency and renewable energy"allocation set-aside. (E) Ifthe amount ofCAIR NO allowances in the new unil'set-aside forthe control period is less than the

sum underclause (B), and

### th~ energy efficiency and renewable energy allocation set-aside is over subscribed, then the departmentshall allocate to each CAIR NO unit covered by an allowance allocation request accepted under clause (A) the amount ofthe CAIR NO

### ~lIowances requested, as adjusted under clause (A), multiplied bythe amount of CAIR NO allowances Ir\'the new unit set-aside forthe control period, divided bythe sum determined underclause (B),xand rounded to the nearestwhole allowance as appropriate. (F) The departmentshall notifyeach CAIR designated representative that submitled an allowance allocation request ofthe amount of CAIR NO allowances, ifany, allocated forthe control period to the CAIR NO unit covered bythe request and submit"the CAIR NO allowances to U.S. EPAaccording to subsection (b)(3).
x
(f) If, aftercompletion ofthe procedures undersubsection (e)(4) for a control period, any unallocated CAIR NO allowances remain in the new unit set-aside forthe control period, the department shall allocate to each CAIR NO unitthat was allocated CAIR NO allowances undersubsection (d) an amount ofCAIR NO allowances· equal to tAe total amount of such remainingXunaliocated CAIR NO allowances, multiplied by the unil'tallocation undersubsection (d), divided by one hundred three thousand four'hundred eighty-eight (103,488) fora control period during 2009 through 2014, and eighty-eightthousand fifty-five (88,055) for a control period during 2015 and thereafter, rounding to the nearestwhole allowance as appropriate.

(g) In addition to the CAIR NO allowances allocated undersubsections (c) through (f), the department shall allocate forthe controi period in 2009 up to twenty thousand one hundred fifty-five (20,155) compliance supplement pool NO allowances to CAIR NO units, in accordance with this section. First, the department shall

reserve allowances for eligible units and assigh the reserved allowances in accordance with subdivisions (2) and (3). Then, the departmentwill allocate earned CAIR NO allowances and surplus CAIR NO allowances in accordance with subdivision (5): x x (1) The following terms and meanings applyto this section: (A) "Baseline emission rate" means the heat inputweighted average NO emission rate for2003 through 2005 (excluding May 1 through September30 of each year). x (B) "Eligible unit" or "eligible units" means a CAIR NO unitthat:

(i) is a coal-fired unit that will be required to comply ,.)ith CAIR annual NO emission limitations beginning x January 1, 2009; (ii) has orwill have:

(AA) post-combustion NO controi equipment, orshares a common stack with a unitthat has orwill have post-combustion NO control equipment installed before December31,2008; or (BB) for all other

### unit~ be able to achieve a NOxemissions rate that is at leastten percent (10%) lower

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than the heat inputweighted average NO emission rate for 2003 through 2005 (excluding May 1 through September 30 ofeach year); x (iii) has an established baseline emissions rate; (iv) for which the department has approved its application in accordance with subdivision (2); and (v) for which the unit in item (ii)(BB) achieves in 2007 or2008, or both (excluding May 1 through September30 ofeach year), a NO emissions rate at least ten percent (10%) iowerthan the baseline emissions rate. x 

### (C) "Emission reduction" or "emission reductions" will be calculated, in tons peryear, in accordance with the following formula:

Emission reductions 

### = [eligible unit's actual heat input for 2007 or2008, or both (excluding May 1 through September 30 ofeach year) x eligible unit's baseline emission rate]

- [eligible unit's actual heat inputfor 2007 or2008, or both (excluding May 1 through September 30 ofeach year) x actual NO emission rate (excluding May 1 through September 30 ofeach year)]/2000. x (D) "Reserved allowance" means an allowance from the compliance supplement pool that the department

reserves for an eligible unit. Reserved allowances have no independentvalue and cannot be traded until afterthey are earned and allocated as CAIR NO allowances to an eligible unit. (E) "Unit's excess emissions reductions" means'bne (1) ofthe following:

(i) The eligible unit's tons of NO emission reductions in excess ofits reserved allowances x 1.5 for units with all ofthe following control eXquiprnent installed:

(AA) Electrostatic precipitator. (BB) Selective catalytic reduction. (CC) Flue gas desulfurization. (ii) The eligible unit'stons of NO emission reductions in excess of its reserved allowances x 1.0 for all other units. x (2) To receive reserved allowances, the designated representative for a CAIR NO unit must submit an application to the department, in a format specified bythe department, within thirty(30) days ofthe effective date ofthis rule, demonstrating that itsatisfies subdivision (1 )(B)(i) through (1 )(B)(iii). The departmentshall approve ordenythe application within one hundred twenty (120) days after receipt ofthe application and designate the amount of allowances it has reserved forthat unit atthat time. (3) The department shall assign reserved allowances to each eligible unit, based on the following formula:

Amount ofreserved allowances, in tons peryear

### = (eligible unit's baseline heat input as defined in subsection (c) + sum of baseline heat input from all eligible units as defined in subsection (c)) x (95% x 20,155). The amount of reserved allowances shall be determined separately each year, 2007 and 2008, depending upon the number of approved applications for eligible units each year. No more than fifty percent (50%) ofthe compliance supplement pool shall be reserved for eligible units in 2007. The remainder ofthe compliance supplement pool shall be reserved for eligible units in 2008 and any demonstrations of need. (4) In orderto receive CAIR NO allowances from the compliance supplement pool the following conditions must be met: x

(A) The owners and operators ofan eligible unitshall monitor and reportthe NO emissions rate and the heat input ofthe unit in accordance with section 11 ofthis rule in each control piriod forwhich early reduction credit is requested. (B) The CAlRdesignated representative of an eligible unitshall submitto the department by May 1, 2009, a request, in a format specified bythe department, for allocation ofan amount of CAIR NO allowances from the compliance supplement pool identifying the amount oftons ofemissions reductions i(has achieved and demonstrating that it has satisfied subdivision (1 ). (C) The actual NO emission rate used in the emissions reduction calculation in subdivision (1)(C) shall be the monitored NOxemission rate for 2007 or2008, respectively. (D) Units that shaPe a common stack shali meetthe following requirements:

(i) Foreach eligible unitthat is part ofa common stack group the restriction in subdivision (1 )(B)(ii)(BB) is applied to the entire common stack group except as provided in item (ii). (ii) Fora common stack group that has a least one (1) unitwith post-combustion NO control equipment, the restriction in subdivision (1 )(B)(ii)(AA) for post-combustion NO control equipmen'l shall applyto the entire common stack group. x (E) No more than fifty percent (50%) ofthe compliance supplement pool shall be reserved or allocated for emission reductions orexcess emission reductions implemented in 2007. The remainder ofthe compliance supplement pool shall be allocated for emission reductions or excess emission reductions implemented in 2008 and demonstrations of need. (5) The department shall review each request undersubdivision (4) and shall allocate CAIR NO allowances from the compliance supplement pool forthe control period in 2009 to CAIR NO units, in accoraance with the following procedures: x (A) Upon receipt of each such request, the department shall make any necessary adjustments to the

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### Indiana Register requestto ensure thatthe amount ofthe CAIR NO allowances requested meetsthe requirements of subdivisions (3) and (4). Ifan eligible unitachieved'emission reductions lessthan orequivalentto the reserved allowances assigned to it undersubdivision (3), the departmentshall allocate CAIR NO allowances from the compliance supplement pool to the eligible unit equal to the actual emissionxreductions achieved bythe eligible unit. Any reserved allowances not eamed by an eligible unit shall remain in the compliance supplement pool to be distributed in accordance with clause (C). (B) To the extent an eligible unitachieved emission reductions in excess ofthe reserved allowances assigned to it undersubdivision (3), the department shall allocate CAIR NO allowances to the eligible unit equal to the amount of its reserved allowances, plus additional CAIR NO afiowances, ifany, from the compliance supplement pool in accordance with clause (C). x (C) Any CAIR NO allowances that remain in the compliance supplement pool following allocation required by clauses (A)

### an~ (B) shall be allocated to eligible unitsthat achieved emission reductions in excess of their reserved allowances. The department shall make allocations ofthe remaining CAIR NO allowances in accordance with the following formula: x An eligible unit's additional CAIR NO allowances from the compliance supplement pool 

### = (unit's excess emissions reductions/ the total tons

# 01 adjusted excess NO emissions reductions achieved by all eligible units) xthe total of remaining CAIR NO allowances in the

### ~ompliance supplement pool following allocation underclauses (A) and (B). In no case shall the actual amount of additional CAIR NO allowances awarded in this clause exceed the numberofactual emission reductions achieved in excess

# 01 the reservation under subdivision (3). (6) 

### Forany CAIR NO unitwhose compliance with CAIR NO emissions limitation forthe control period in 2009 would create an"undue riskto the reliability ofelectricitysupply during such control period, the CAIR designated representative ofthe unit may request the allocation ofCAIR NO allowances from the compliance supplement pool in accordance with the following: x (A) The CAIR designated representative of such CAIR NO unit shall submitto the department by May 1, 2009, a request, in a format specified bythe department, f6rallocation of an amount of CAIR NO allowances from the compliance supplement pool not exceeding the minimum amount ofCAIR NO allowances necessaryto remove such undue riskto the reliability ofelectricity supply. x (B) In the request underclause (A), the CAIR designated representative ofsuch CAIR NO unitshall demonstrate that, in the absence ofallocation to the unitofthe amount ofCAIR NO

### allow~nces requested, the unit's compliance with CAIR NO emissions limitation forthe control period in 2009 would create an undue riskto the reliability of electri6;ty supply during such control period. This demonstration must include a showing that itwould not be feasible forthe owners and operators ofthe unitto:

(i) obtain a sufficient amount ofelectricityfrom otherelectricity generation facilities, during the installation of control technology atthe unitfor compliance with the CAIR NO emissions limitation, to prevent such**~~~;m** x 

### (ii) obtain undersubdivisions (5) and (7), orotherwise obtain, a sufficient amount ofCAIR NO allowances to prevent such undue risk. x (7) The departmentshall review each request undersubdivision (6) and shall allocate CAIR NO allowances, notto exceed one thousand eight (1,008) allowances, forthe control period in 2009 to CAIR Net units covered by such request. If no requests for allowances are received undersubdivision (6), 

### the

### allowance~ shall be available for allocation undersubdivision (5)(C). (8) By November30, 2009, the departmentshall determine, and submit to the U.S. EPAthe allocations of CAIR NO allowances from the compliance supplement pool undersubdivisions (5) and (7). (9) By

### Ja~uary 1, 2010, the U.S. EPAwill record the allocations undersubdivision (8).

(h) For projects that reduce NO emissions through the implementation ofenergy efficiency or renewable energy measures, or both,

### implem~nted during a control period beginning January 1, 2009, the department shall allocate NO allowances in accordance with the following procedures: (1) The €nergyefficiency and renewable energy allocation set-aside shall be allocated NO allowances equal to the following: x (A) Five hundred forty-five (545) tons for a control period during 2009 through 2014. (B) Four hundred fifty-four (454) tons for a control period during 2015 and thereafter. (2) Any person may submitto the department a request, in writing, or in a format specified by the department, for NO allowances as follows: (A) Sponsors ofenergy efficiency or renewable energy projects in section 2(38)(A) 2(39)(A) through 2(38)(101) 2(39)(H) ofthis rule may request the reservation of NO allowances, for one (1) control period in which the project is implemented. Project sponsors may reapply'each year, notto exceed five (5) control periods for energy efficiency projects in sections 2(38)(A), 2(38)(8), 2(38)(E), 2(39)(A), 2(39)(8), 2(39)(E), and 2(38)(F) 2(39)(F) ofthis rule and for an unlimited numberofyears for projects in sections 2(38)(G),

Date: Jun 26,2009 9:29:21AM EDT DIN: 200B0123-IR-3260B0005FDA Page 16Indiana Register 2(38)(0), 2(39)(C), 2(39)(0), and 2(38)(H) 2(39)(H) ofthis rule. Requests for allowances may be made for projects implemented two (2) years before the effective date ofthis rule. Projects must equal at least one (1) ton of NO emissions and multiple projects may be aggregated into one (1) allowance allocation request to equal one x

### (1) or more tons of NO emissions. (B) The NO allowance allocationx,equest must be submitted by May 1 ofthe calendaryearforwhich the NO aliowaRce allocation is requested. (C)The NO allowance allocation request for an integrated gasification combined cycle project under section

### 2(3~(G) 2(39)(G) ofthis rule must be submitted by May 1 ofthe calendaryearfor which the NO allowance allocation is requested and afterthe date on which the department issues a permitto

### constru~t the CAIR NO unit. For integrated gasification combined cycle projects, project sponsors may request the reservation ofNO allowances, based on the numberofkilowatt hours ofelectricity generated based on an eighty-five percent (85%) capacityfactor and expected heat rate ofthe unit. Project sponsors may reapply each year, not to exceed five (5) control periods. Requests for allowances may be made onlyfor integrated gasification combined cycle projects which first start commercial operations in 2009 and beyond. (3) In a NO allowance allocation request made underthis subsection, the project sponsor may request for a control

### peri~d, NO allowances notto exceed the following: (A) Projects in s:'ction 2(38)(A) 2(39)(A) ofthis rule that claim allowances based upon reductions in the consumption ofelectricity and that are sponsored by end-users or nonutilitythird parties receive allowances based upon the numberof kilowatt hours of electricity saved during a control period and the following formula: Allowances = (kWS x 0.0015)/2,000

Where: Allowances 

# = The numberofallowances awarded to a project sponsor. kWS = The numberof kilowatt hours ofelectricitysaved during a control period by the project. (B) Projects in section 2(38)(0'\) 2(39)(A) ofthis rule that claim allowances based upon reductions in the consumption ofelectricityand that are sponsored by electric generating units shall be awarded allowances according to the following formula: Allowances 

### = (kWS x 0.00075/2,000)

Where: Allowances 

### = The numberofallowances awarded to a project sponsor. kWS = The numberofkilowatt hours ofelectricitysaved during a control period by the project. (C) Projects in section 2(38)(A) 2(39)(A) ofthis rule that claim allowances based upon reductions in the consumption ofenergy otherthan electricity and that are not CAIR NO units shall be awarded allowances according to the following formula: x Allowances 

### = «(Et1/Pt1)

- (Et2/Pt2)) x Pt2 x NPt2 x (NPt1/NPt2)/2,000

Where: Allowances 

### = The numberofallowances awarded to a project sponsor. Et1 

### = Energy consumed percontrol period before project implementation. Pt1 

# = Units of product produced percontrol period before project implementation. Et2 

# = Energy consumed in the most recent control period. Pt2 

### = Units of product produced in the most recent control period.
NPt1 

### = NO produced during the consumption ofenergy, measured in pounds per million x British thermal units before project implementation.

NPt2 = NO produced during the consumption ofenergy, measured in pounds per million x British thermal units in the most recent control period. (D) Projects in section 2(38)(0'\) 2(39)(A) ofthis rule that claim allowances based upon reductions in the consumption ofenergy otherthan electricity and that are CAIR NO units shall be awarded allowances according to the following formula: x Allowances 

### = «(Et1/Pt1)

- (El2/Pt2)) x Pt2 x NPt2 x (NPt1/NPl2) x 0.5)/2,000

Where: Allowances 

### = The numberof allowances awarded to a project sponsor. Et1 

### = Energy consumed percontrol period before project implementation. Pt1 

### = Units of product produced percontrol period before project implementation. Et2 

### = Energy consumed in the most recent control period. Pt2 

### = Units of product produced in the most recent control period.
NPt1 = NO produced during the production process, measured in pounds per million


# , British thermal units before project implementation.

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR·326080005FDA Page 17Indiana Register

NO CHP
x Where:

Allowances kWG Allowances
NO conventional x NP12 

### = NO produced during the production process, measured in pounds per million x British thermal units in the most recent control period.
Product produced, as used in the formulas in this clause and clause (C), may include manufactured items;
raw, intermediate, orfinal materials; orother products measured in discrete units and produced as a result ofthe consumption ofenergy in a specific process or piece ofequipment. Claims for allowances must include documentation of NO emissions per British thermal unit both before and after implementation ofthe project forthe energy-consu,,!iing process forwhich energysavings are claimed. (E) Projects in section 2(38)(8) 

### 2(39)(8) ofthis rule that claim allowances based upon highly efficient electricity generation using systems such as combined cycle, microturbines, and fuel cell systems forthe predominant use of a single end user, that meetthe thresholds specified in section 2(38)(8) 

### 2(39)(8) ofthis rule, that are not CAIR NO units undersection 1 ofthis rule, and that are sponsored by end-users or nonutilitythird parties,

### rece~ve allowances based upon the net amount ofelectricity generated during a control period and the following formula: Allowances 

### =(kWG x (0.0015-NO
x))/2,000

Allowances 

### = The number ofallowances awarded to a project sponsor. kWG = The numberof net kilowatt hours of electricity generated during a control period by the project.
NO
x 

### = The amount of NOxproduced during the generation ofelectricity, measured in pounds per kilowatt hour. (F) Projects in section 2(38)(8) 

### 2(39)(8) ofthis rule that claim allowances based upon highly efficient combined heat and powersystems forthe predominant use ofa single end user, that meetthe thresholds specified in section 2(38)(8) 

### 2(39)(8) ofthis rule, that are not CAIR NO units undersection 1 ofthis rule, and that are sponsored by end-users or nonutiiitythird parties, receive

### ~lIowances based upon the net amount ofenergy generated and used during a control period and the following formula: Allowances 

### = (NO conventional

- NO CHP)/2,000 x x



### = The numberofallowances awarded to a project sponsor.



### = [(0.15 x 3,412 x kWG 10.34) 

### + (0.17 x HeatOuti 0.8)]11 ,000,000



### = (Btuln x NOx Rate)/1,000,000
kWG 

### =The numberof net kilowatt hours ofelectricity generated during a control period bythe project. HeatOut

### =The numberof British thermal units (Btu) of heat orsteam effectively used for space, water, or industrial process heat during a control period by the project.
NO Rate = NO emitted during normal system operation bythe project, x x measured in pounds per million Btu offuel input.
Btuln 

### =The numberof British thermal units (Btu) offuel used to produce electricity, heat, orsteam during a control period bythe project. (G) Projects in section 2(38)(8) 

### 2(39)(8) and 2(38)(0) 

### 2(39)(G) ofthis rule receive allowances based upon the numberofkilowatt hours of electricity each project generates during a control period. Highly efficient electricity generation projects using systems such as combined cycle, microturbines, and fuel cell systems forthe predominant use of a single end user, that meet a rated energy efficiency threshold ofsixty percent (60%) for combined cycle systems and forty percent (40%) for microturbines and fuel cells; or integrated gasification combined cycle, and that are sponsored by NO allowance account holders that own oroperate units that produce electricity and are subjectto the emissioli limitations ofthis rule shall receive allowances based upon the net amount ofelectricity generated during acontrol period and the following formula: Allowances 

### = (kWG x (0.0015

- NO ) x 0.5)/2,000
x



### = The numberofallowances awarded to a project sponsor.

= The numberofnet kilowatt hours ofelectricity generated during a control period by the project.
NOx = The amount of NOxproduced during the generation ofelectricity, measured in pounds per kilowatt hour. (H) Projects in subdivision (2) and specified in section 2(38)(G) 

### 2(39)(C) and 2(38)(9) 

### 2(39)(0) ofthis rule receive allowances based upon the numberof kilowatt hours ofelectricity each project generates during a control period and according to the following formula: Allowances 

### = (kWG x 0.0015)/2,000 Where:

Where:

Where:

Date: Jun 26,2009 9:29:21AM EDT DIN: 200B0123-IR-3260B0005FDA Page 18Indiana Register

Allowances kWG

Allowances

NO Rate x HeatOut Where:

Where:

Where: 

### = The numberofallowances awarded to a project sponsor.

= The numberof kilowatt hours ofelectricity generated during a control period bythe project. (I) Projects in subdivision (2) and specified in section 2(38)(E) 2(39)(E) and 2(38)(F) 2(39)(F) ofthis rule receive allowances based upon the difference in emitted NO per megawatt hourofoperation for units before and after replacement or improvement and according10 the following formula: Allowances

### =«Et1

- E12) x h) x 0.5)/2,000

Allowances 

### = The number of allowances awarded to a project sponsor. Et1 = The emission rate in pounds per megawatt hourof NO ofthe unit before
x improvement or replacement.

Et2 

### = The emission rate in pounds per megawatt hourof NO ofthe unit after
x improvement or replacement.
h 

### = The numberofmegawatt hours ofoperation during the control period. (J) Projects in section 2(38)(A) 2(39)(A) ofthis rule based upon energy efficiencyotherthan electricity savings shall be awarded allowances according to the following formula:

. Allowances 

### = (NO Rate x HeatOut 10.8)/1,000,000/2,000 x

= The numberofallowances awarded to a project sponsor.



### = 0.17 Ib/MMBtu orthe actual NO emission rate, whichever is greater. x



### = The numberof British thermal units (Btu) of heat orsteam effectively used for space, water, or industrial process heat during a control period by the project. (K) Projects in section 2(38)(H) 2(39)(H) ofthis rule using renewable energyto displace coal, natural gas, or oil combustion and reduce NO emissions shall be awarded allowances according to the following formula: Aifowances = «0.17 x Fuel-lnput)/1,000,000)/2,000

Where: Allowances 

### = The numberofallowances awarded to a project sponsor. Fuel-Input 

### = The amount ofheat input, in Btu, from the renewable energy. (4) The department shall review, reserve, and allocate CAIR NO allowances pursuantto, each allowance allocation request by July 31 each year as follows: '

(A) Upon receipt ofthe NO allowance allocation request, the department shall make any necessary adjustments to the request10 ensure that the numberofallowances specified in the request is consistent with the requirements ofsubdivision (3). (B) Ifthe energy efficiency and renewable energy allocation set-aside forthe control period forwhich NO allowances are requested has an amount of NO allowances greaterthan orequal to the number requesfed,

as adjusted underclause (A), the departmentsh'all reserve the amount ofthe NO allowances requested, as adjusted underclause (A), to the energy efficiency and renewable energy

### project~. (C) Ifthe energy efficiency and renewable energy allocation set-aside forthe control period forwhich NO allowances are requested has an amount of NO allowances less than the number requested, as adjustea underclause (A), but the new unitset-aside is ui\der-subscribed, the department shall reserve the amount ofthe NO allowances requested with the difference reserved from the new unitset-aside. (0) Ifthe &nergy efficiency and renewable energy allocation set-aside forthe control period forwhich NO allowances are requested has an amount of NO allowances less than the number requested, as adjustea under clause (A), and the new unit set-aside is o'ver-subscribed, the department shall reserve the allocation set-aside on a pro rata basis, exceptthat allowances requested for projects undersection 2(38)(A), 2(38)(G), 2(38)(0), 2(39)(A), 2(39)(C), 2(39)(0), and 2(38)(H) 2(39)(H) ofthis rule shall be reserved first, reserved for projects under section 2(38)(8) 2(39)(6) and 2(38)(G) 2(39)(G) ofthis rule second, reserved for projects under section 2(38)(E) 2(39)(E) ofthis rule third, and reserved for projects under section 2(38)(F) 2(39)(F) ofthis rule fourth. (E) Any unreserved allowances shall be distributed as follows:

(i) Fifty percent (50%) ofthe unreserved allowances shall be retained bythe state to fund a grant program for energy efficiency and renewable energy projects. The grant program projects do not need to meetthe

one (1) ton ofNO emissions for singularor aggregated projects undersubdivision (2). The unreserved NO allowances s'hall be deposited in a general allowance account established in accordance with this rule by !'he Indiana office ofenergy and defense development in accordance with the allowance allocation requirements ofthis rule, subjectto the following:

(AA) The Indiana office ofenergy and defense development shall deposit revenue from the sale of unreserved NO allowances in a dedicated general NO account established by these**F~les** this rule used exclusivelyto

### p~ovide matching grant funds for energy &fficiency and renewable energy projects,

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 19Indiana Register including, but not limited to, the purchase and installation of alternative energy systems and programs to support energy efficiency projects. (88) The Indiana office ofenergy and defense development shall hold the unreserved NO allowances in

a general NO account until such time that project(s) are approved for grantfunding, atwhkh time NO allowances sfiall be sold to provide cash dollars forthe grant funding. x (CC) Revenue from the sale of unreserved NO allowances held bythe state of Indiana through the Indiana office of energy and defense developm"ent shall not revert to the state general fund, and shall only be used to provide matching grant funds forthe installation of energy efficiency and renewable energy projects as defined in this subsection. (DO) Effective November 1,2009, and annuallythereafter, the Indiana office ofenergy and defense development shall provide a report to the commissioner and the air pollution control board regarding the allowance transaction activityand the distribution and the balance ofthe matching grantfunds for energy efficiencyand renewable energy projects during that period. At a minimum, the report shall contain the following:

(aa) The numberof NOxallowances currently held in general NOxaccount(s) by the Indiana office of energy and defense development. (bb) A summary oftransactions in the market, including the daters) oftransactions, the numberof allowances transacted, and the distribution of proceeds from transactions (including brokerage fees). (cc) The distribution ofgrant funding by recipient. (dd) Afull description oftype of project(s) funded. (ee) A summary ofthe benefits ofeach project. (EE) Ifat anytime after November 1, 2009, the total numberofunreserved annual NO allowances held bythe Indiana office ofenergy and defense development is greaterthan five hundred (s00) tons, fifty percent (50%) ofthe total amount of NO allowances shall be returned to the departmentfor redistribution to existing CAIR NO units on a pro ratabasis. (ii) Fifty percent (50%) ofthe unreserved allowances shall be allocated to CAIR NO units on a pro rata basis. x (5) Afterthe completion ofthe control period forwhich CAIR NO allowances had been reserved, the project sponsorshall submitthe results ofthe actual savings or generatfon by January 31 the following year. Allowances shall be awarded only afterverification of project implementation and certification of energy, emission, orelectricity savings, as appropriate. The department shall consult the Indiana office ofenergy and defense development concerning verification and certification. (6) The department shall allocate the appropriate amount of CAIR NO allowances based on the review ofthe submittal ofactual savings orgeneration results undersubdivision (5)x and notifythe CAIR NO designated representative that submitted the request and the U.S. EPAofthe numberof NO allowances 'kllocated forthe control period by March 31 ofeach year. Any person to whom the department al16cates NO allowances shall establish a general account undersection 9(b) ofthis rule. x

*These documents are incorporated by reference. Copies may be obtained from the Government Printing Office, 732 North Capitol Street NW, Washington, D.C. 20401 or are available for review and copying atthe Indiana Department of Environmental Managernent, Office ofAir Quality, Indiana Government Center-North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204. (AirPollution ControlBoard; 326 lAC24-1-8; filedJan 26, 2007, 10:25a.m.: 20070221-IR-326050117FRA!

SECTION 4. 326 lAC 24-1-9 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-1-9 CAIR 

### NO allowance tracking system x Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-15; IC 13-17

Sec. 9. (a) Except as provided in section 12(f)(7) ofthis rule, upon receipt of a complete certificate of representation undersection 6(h) ofthis rule, the U.S. EPAwill establish a compliance account forthe CAIR NO

source for which the certificate of representation was submitted unless the source already has a compliance x account.

(b) Any person may applyto open a general accountforthe purpose of holding and transferring CAIR NO allowances. An application for a general account maydesignate one (1) and only one (1) CAIR authorized x

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 20Indiana Register

account representative and one (1) and only one (1) altemate CAIR authorized account representative who may act on behalf ofthe CAIR authorized account representative. The agreement bywhich the alternate CAIR authorized account representative is selected shall include a procedure for authorizing the alternate CAIR authorized account representative to act in lieu ofthe CAIR authorized account representative. The establishment ofthe general account shall be subjectto the following: (1) A complete application fora general account shall be submitted to the U.S. EPAand shall include the following elements in a format prescribed bythe U.S. EPA: (A) The following information concerning the CAIR authorized account representative and any altemate. CAIR authorized account representative:

(i) Name. (ii) Mailing address. (iii) E-mail address, if any. (iv) Telephone number. (v) Facsimile transmission number, if any. (B) Organization name and type oforganization, ifapplicable. (C) A list ofall persons subjectto a binding agreementforthe CAIR authorized account representative and any alternate CAIR authorized account representative to represent their ownership interestwith respect to the CAIR NO allowances held in the general account. 

### (0) The foll00ing certification statement bythe CAIR authorized account representative and any alternate CAIR authorized account representative: "I certifythat I was selected as the CAIR authorized account representative orthe altemate CAIR authorized account representative, as applicable, by an agreementthat is binding on all persons who have an ownership interestwith respect to CAIR NO allowances held in the general account. I certifythat I have all the necessary authorityto carry out my dutfes and responsibilities underthe CAIR NO annual trading program on behalfofsuch persons and that each such person shall be fully bound by my r€presentations, actions, inactions, orsubmissions and by any orderordecision issued to

me by the U.S. EPAora court regarding the general account.". (E) The signature ofthe CAIR authorized account representative and any alternate CAIR authorized account representative and the dates signed. (F) Unless otherwise required bythe department orthe U.S. EPA, documents ofagreement referred to in the application for a generai account shall not be submitted to the department orthe U.S. EPA. N'i'itherthe department northe U.S. EPAshall be underany obligation to review orevaluate the sufficiency ofsuch documents, ifsubmitted. (2) Upon receipt bythe U.S. EPA ofa complete application for a general account undersubdivision (1), the following shall apply: (A) The U.S. EPAwill establish a general accountforthe person or persons for whom the application is submitted. (B) The CAIR authorized account representative and any alternate CAIR authorized account representative forthe general account shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each person who has an ownership interestwith respect to CAIR NO allowances held in the general account in all matters pertaining to the CAIR NO annual trading program, x notwithstanding any agreement between the CAIR authorized accoant representative orany alternate CAIR authorized account representative and such person. Any such person shall be bound by any orderor decision issued to the CAIR authorized account representative orany alternate CAIR authorized account representative bythe U.S. EPAora court regarding the general account. (C) Any representation, action, inaction, or submission by any alternate CAIR authorized account representative shall be deemed to be a representation, action, inaction, orsubmission bythe CAIR authorized account representative. (0) Each submission concerning the general account shall be submitted, signed, and certified bythe CAIR authorized account representative orany alternate CAIR authorized account representative forthe persons having an ownership interestwith respect to CAIR NO allowances held in the general account. Each such submission shall include the following certification

### stat~ment bythe CAIR authorized account representative

orany alternate CAIR authorized account representative: "I am authorized to make this submission on behalfofthe persons having an ownership interest with respect to the CAIR NO allowances held in the general account. I certify underpenalty of lawthat I have personally examined,

### ~nd am familiarwith, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certifythat the statements and information are to the best ofmy knowledge and belieftrue, accurate, and complete. I am aware that there

are significant penalties for submitting false statements and infonmation oromitting required statements and information, inclUding the possibility offine or imprisonment.". (E) The U.S. EPAwill accept oract on a submission concerning the general account only ifthe submission has been made, signed, and certified in accordance with clause 

### (0).

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR·326080005FDA Page 21Indiana Register (3) The following shall appiyto changing the CAIR authorized account representative oraltemate CAIR authorized account representative, and changes in persons with ownership interest: (A) The CAIR authorized account representative for a general account may be changed at anytime upon receipt bythe U.S. EPAofa superseding complete application for a general account undersubdivision (1). Notwithstanding any such change, all representations, actions, inactions, and submissions bythe previous CAIR authorized account representative before the time and date when the U.S. EPA receives the superseding application for a general account shall be binding on the new CAIR authorized account representative and the persons with an ownership interest with respect to the CAIR NO allowances in the
x general account. (8) The alternate CAIR authorized account representative for a general account may be changed at any time upon receipt bythe U.S. EPAof a superseding complete application for a general account under subdivision (1). Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous alternate CAIR authorized account representative before the time and date when the U.S. EPA receives the superseding application for a general account shall be binding on the new alternate CAIR authorized account representative and the persons with an ownership interestwith respect to the CAIR NO allowances in the general account. x (C) In the event a person having an ownership interestwith respect to CAIR NO allowances in the general account is not included in the list of such persons in the application for a generaraccount, such person shall be deemed to be subjectto and bound by the application for a general account, the representation, actions, inactions, and submissions ofthe CAIR authorized account representative and any alternate CAIR authorized account representative ofthe account, and the decisions and orders ofthe U.S. EPA ora court,

as ifthe person were included in such list. (D) Within thirty (30) days following any change in the persons having an ownership interestwith respect to CAIR NO allowances in the general account, including the addition ofa new person, the CAIR authorized account

### r~presentative orany alternate CAIR authorized account representative shall submit a revision to the application for a general account amending the list ofpersons having an ownership interest with respect to the CAIR NO allowances in the generai accountto include the change. (4) Once a comple"te application for a general account undersubdivision (1) has been submitted and received, the U.S. EPAwill rely on the application unless and until a superseding complete application fora general account undersubdivision (1) is received by the U.S. EPA. (5) Except as provided in subdivision (3)(A) or (3)(8), no objection orothercommunication submitted to the U.S. EPA concerning the authorization, orany representation, action, inaction, orsubmission ofthe CAIR authorized account representative orany alternate CAIR authorized account representative for a general account shall affect any representation, action, inaction, orsubmission ofthe CAIR authorized account representative orany alternate CAIR authorized account representative orthe finality ofany decision ororder bythe U.S. EPA underthe CAIR NO annual trading program. (6) The U.S. EPAwill not adjudicate

### ~ny private legal dispute concerning the authorization orany representation, action, inaction, orsubmission ofthe CAIR authorized account representative orany alternative CAIR authorized account representative for a general account, including private legal disputes conceming the proceeds of CAIR NO allowance transfers. (7) The following shall applyto delega"tion bythe CAIR authorized account representative and alternate CAIR authorized account representative: (A) A CAIR authorized account representative may delegate, to one (1) or more natural persons, his or her authorityto make an electronic submission to the U.S. EPA provided for or required undersections 9 and 10 ofthis rule. (8) An alternate CAIR authorized account representative may delegate, to one (1) or more natural persons, his or herauthorityto make an electronic submission to the U.S. EPA provided for or required under sections 9 and 10 ofthis rule. (C) In orderto delegate authorityto make an electronic submission to the U.S. EPA in accordance with clause (A) or (8), the CAIR authorized account representative orthe alternate CAIR authorized account representative, as appropriate, must submitto the U.S. EPA a notice ofdelegation, in a format prescribed bythe U.S. EPA, that includes the following elements:

(i) The name, address, e-mail address, telephone number, and facsimile transmission number, ifany, of the following:

(AA) The CAIR authorized account representative oralternate CAIR authorized account representative. (88) Each natural person, referred to as an "agent". (Ii) Foreach such natural person, a list ofthe type ortypes of electronic submissions underclause (A) or (8) forwhich authority is delegated to him or her. (Iii) The following certification statements by such CAIR authorized account representative oralternate CAIR authorized account representative:

(AA) "I agree that any electronic submission to the U.S. EPAthat is by an agent identified in this notice of

Dale: Jun 26,2009 9:29:21AM EDT DIN: 200B0123-IR-3260B0005FDA Page 22Indiana Register delegation and ofa type listed for such agent in this notice ofdelegation and that is made when I am a CAIR authorized account representative oralternate CAIR authorized representative, as appropriate, and before this notice ofdelegation is superseded by another notice ofdelegation under 326 lAC 24-1-**~(b)(7)(D)** shall be deemed to be an electronic submission by me.". (BB) "Until this notice ofdelegation is superseded by another notice of delegation under 326 lAC 24-1-**~(b)(7)(D),** I agree to maintain an e-mail account and to notifythe U.S. EPA immediately of any change in my e-mail address unless all delegation ofauthority by me under326 lAC 24-1-9(b)(7) is terminated.". (D) A notice ofdelegation submitted underclause (C) shall be effective, with regard to the CAIR authorized account representative oralternate CAIR authorized account representative identified in such notice, upon receipt of such notice bythe U.S. EPAand until receipt by the U.S. EPA of a superseding notice of delegation submitted by such CAIR authorized account representative oralternate CAIR authorized account representative, as appropriate. The superseding notice ofdelegation may replace any previously identified agent, add a new agent, or eliminate entirely any delegation of authority. (E) Any electronic submission covered by the certification in clause (C)(iii)(AA) and made in accordance with

a notice of delegation effective underclause (D) shall be deemed to be an electronic submission bythe CAIR authorized account representative oralternate CAIR authorized account representative submitting such notice ofdelegation.

(c) The U.S. EPAwill assign a unique identifying numberto each account established undersubsection (a) or 

### (b).

(d) Following the establishment ofa CAIR NO allowance tracking system account, all submissions to the U.S. EPA pertaining to the account, including, but not rtmited to, submissions concerning the deduction ortransferof CAIR NO
xallowances in the account, shall be made only bythe CAIR authorized account representative forthe account.



### (e) By September 30, 2007, the U.S. EPAwill record in the CAIR NO source's compliance account the CAIR NO allowances allocated forthe CAIR NO units atthe source, as

### sUbm~tted by the department in accordance witli'section 8(b)(1) ofthis rule, forthe

### cont~ol periods in 2009, 2010, 2011, 2012, 2013, and 2014.

(f) By December 1,2008, and every six (6) years thereafter, the U.S. EPAwill record in the CAIR NO source's compliance account the CAIR NO allowances allocated forthe CAIR NO units atthe source, as submitted by the department in accordance witY; section 8(b)(2) ofthis rule, forthe cont101 periods seven (7), eight (8), nine (9), ten (10), eleven (11), and twelve (12) years afterthe allowance allocation.



### (g) By December 1, 2009, and December 1 ofeach yearthereafter, the U.S. EPAwill record in the CAIR NO source's compliance account the CAIR NO allowances allocated forthe CAIR NO units at the source, as x submitted bythe department in accordanc€with section 8(b)(3) ofthis rule, forthe"control period in the year ofthe applicable deadline for recordation underthis subsection.

(h) When recording the allocation ofCAIR NO allowances for a CAIR NO unit in a compliance account, the U.S. EPAwill assign each CAIR NO allowance aXunique identification numb€rthat includes digits identifying the year ofthe control period for which tHe CAIR NO allowance is allocated. x
(i) The CAIR NO allowances are available to be deducted for compliance with a source's CAIR NO emissions limitationtora control period in a given calendaryear only ifthe CAIR NO allowances: x (1) were allocated forthe control period in the year ora prioryear; and x (2) are held in the compliance account as ofthe allowance transferdeadline forthe control period orare transferred into the compliance account by a CAIR NO allowance transfer correctly submitted for recordation undersection 10(a)through 10(d) by the allowance traAsferdeadline forthe control period.



## UJ The following shall applyto deductions for purposes of compliance with a source's emissions limitation: (1) Following the recordation, in accordance with section 10(b) through 10(d) ofthis rule, of CAIR NO allowance transfers submitted for recordation in a source's compliance account bythe allowance

### tran~fer deadline for a control period, the U.S. EPAwill deduct from the compliance account CAIR NO allowances available under subsection (i) in orderto determine whetherthe source meets the CAIR NO €missions limitation forthe control period, as foilows: x

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 23Indiana Register (A) until the amount of CAIR NO allowances deducted equals the numberoftons oftotal nitrogen oxides emissions, determined in accorJ'ance with section 11 ofthis rule, from all CAIR NO units atthe source for the control period; or x (B) ifthere are insufficient CAIR NO allowances to complete the deductions in clause (A), until no more CAIR NO allowances available uncfersubsection (i) remain in the compliance account. (2) The CAIR authorized account representative for a source's compliance account may request that specific CAIR NO allowances, identified by serial number, in the compliance account be deducted for emissions or
excess efilissions for a control period in accordance with subdivision (1) or (4). Such request shall be submitted to the U.S. EPA by the allowance transferdeadline forthe control period and include, in a format prescribed by the U.S. EPA, the identification ofthe CAIR NO source and the appropriate serial numbers. (3) The U.S. EPAwill deduct CAIR NO allowances undersuti'division (1) or (4) from the source's compliance account, in the absence

### of~n identification or in the case ofa partial identification of CAIR NO allowances by serial number undersubdivision (2), on afirst-in, first-out (FIFO) accounting basis in the x following order: (A) Any CAIR NO allowances that were allocated to the units at the source, in the orderofrecordation. (B) Any CAIR NOxallowances that were allocated to any entity and transferred and recorded in the compliance accou'nt undersection 10 ofthis rule, in the order of recordation. (4) After making the deductions for compliance undersubdivision (1) for a control period in a calendaryear in which the CAIR NO source has excess emissions, the U,S. EPA will deductfrom the source's compliance account an amount'hfCAIR NO allowances, allocated forthe control period in the immediately following calendar year, equal to three (3ftimes the numberoftons ofthe source's excess emissions. (5) Any allowance deduction required undersubdivision (4) shall not affectthe liabilityofthe owners and operators ofthe CAIR NO source orthe CAIR NO units atthe source for any fine, penalty, orassessment, or theirobligation to comply

### ~ith any other remedy, f& the same violations, as ordered underthe Clean AirAct or applicable state law. (6) The U.S. EPAwill record in the appropriate compliance account all deductions from such an account under**s~138ivisieA** subdivisions (1), (4), and (5) and section 12 ofthis rule. (7) The U.S. EPA may review and conduct independent audits concerning any submission underthe CAIR NO annual trading program and make appropriate adjustments ofthe information in the submissions. (8) the U.S. EPA maydeduct CAIR NO allowances from ortransfer CAIR NO allowances to a source's compliance account based on the inforrJation in the submissions, as adjusted t'indersubdivision (7), and record such deductions and transfers,

(k) CAIR NO allowances may be banked forfuture use ortransfer in a compliance account ora general account. Any Cf(IR NO allowance that is held in a compliance account or a general account shall remain in such account unless and

### unt~ the CAIR NO allowance is deducted or transferred undersubsection (i), 0), or (I) or section 10 or 12 ofthis rule. x

(I) The U.S. EPA may at its sole discretion and on its own motion, correct any error in any CAIR NO allowance tracking system account. Within ten (10) business days of making such correction, the U.S.

### ~PA will notify the CAIR authorized account representative forthe account.

(m) The CAIR authorized account representative ofa general account may submitto the U.S. EPA a request to close the account, which shall include a correctly submitted allowance transfer undersection 10(8) through 10(d) ofthis rule for any CAIR NO allowances in the account to one (1) or more otherCAIR NO allowance 

### t k· x x rae ,ng system accounts.

(n) Ifa general account has no allowance transfers in or out ofthe account for a twelve (12) month period or longerand does not contain any CAIR NO allowances, the U.S. EPA may notify the CAIR authorized account representative forthe accountthat the

### acc~unt shall be closed following twenty (20) business days afterthe notice is sent. The account shall be closed afterthe twenty (20) day period unless, before the end ofthe twenty (20) day period, the U.S. EPA receives a correctly submitted transferof CAIR NO allowances into the account undersection 10(a) through 10(d) ofthis rule or a statement submitted by the CAIR authorized account representative demonstrating to the satisfaction ofthe U.S. EPA good cause as to why the account should not be closed. (AirPollution ControlBoard; 326 lAC24-1-9; filedJan 26, 2007, 10:25a,m,: 20070221-IR-326050117FRAJ

SECTION 5. 326 lAC 24-1-12 IS AMENDED TO READ AS FOLLOWS:

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123·'R·326080005FDA Page 24Indiana Register

326 lAC 24-1-12 CAIR 

### NO opt-in units x. Authority: IC 13-14-8: IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-15: IC 13-17

Sec. 12. (a) A CAIR NO opt-in unit is a unitthat meets all ofthe following requirements: (1) Is located in Indiana.' (2) Is not a CAIR NO unit undersection 1 ofthis rule and is not covered by a retired unit exemption that is in effect undersection

## :J ofthis rule. (3) Is not covered by a retired unit exemption that is in effect under40 CFR 72.8". (4) Has or is required orqualified to have a Part 70 operating permit orotherfederally enforceable permit. (5) Vents all ofits NO emissions to a stack and can meetthe monitoring, record keeping, and reporting requirements ofsecti6n 11 ofthis rule.

(b) Except as otherwise provided in sections 1,2,4 through 7, and 9 through 11 ofthis rule, a CAIR NO opt-in unit shall be treated as a CAIR NO, unit for purposes ofapplying such sections ofthis rule. '

(c) Solelyfor purposes ofapplying, as provided in this section, the requirements of section 11 ofthis rule to a unitfor which a CAIR opt-in permit application is submitted and notwithdrawn and a CAIR opt-in permit is not yet issued or denied underthis section, such unit shall be treated as a CAIR NO unit before issuance of a CAIR opt-in permitfor such unit. '

(d) Any CAIR NO opt-in unit, and any unit for which a CAIR opt-in permit application is submitted and not withdrawn and a CAlf< opt-in permit is not yet issued ordenied underthis section, located at the same source as
one (1) or more CAIR NO units shall have the same CAIR designated representative and alternate CAIR designated representative'as such CAiR NO units. 

# ,
(e) The CAIR designated representative of a unit meeting the requirements for a CAIR NO opt-in unit in subsection (a) may apply for an initial CAIR opt-in permit at anytime, except as provided underrsubsection (h)(8) and (h)(9), and, in orderto apply, must submitthe following: (1) A complete CAIR permit application undersection 7(c) ofthis rule. (2) A certification, in a format specified by the department, that the unit:

(A) is not a CAIR NO unit under section 1 ofthis rule and is not covered by a retired unit exemption that is in effect undersectioA 3 ofthis rule; (B) is not covered by a retired unit exemption that is in effect under40 CFR 72.8'; (C) vents all of its NO emissions to a stack; and (D) has documented

### ~eat input for more than eight hundred seventy-six (876) hours during the six (6) months immediately preceding submission ofthe CAIR permit application under section 7(c) ofthis rule. (3) A monitoring plan in accordance with section 11 ofthis rule. (4) A complete certificate of representation under section 6(h) ofthis rule consistent with subsection (d), if no CAIR designated representative has been previously designated forthe source that includes the unit. (5) A statement, in a format specified bythe department, whetherthe CAIR designated representative requests that the unit be allocated CAIR NO allowances under subsection 0)(3) or 0)(4), subjectto the conditions in subsections (f)(10) and (h)(8).1f allocation undersubsection 0)(4) is requested, this statement shall include a statementthat the owners and operators ofthe unit intend to repowerthe unit before January 1, 2015, and that they will provide, upon request, documentation demonstrating such intent. The CAIR designated representative of a CAIR NO opt-in unit shall submit a complete CAIR permit application under section 7(c) ofthis rule to renew the CAIR

### op~-in unit permit in accordance with 327 lAC 2-7 or 327 lAC 2-8, if applicable, addressing permit renewal. Unless the department issues a notification ofacceptance ofwithdrawal ofthe CAIR opt-in unitfrom the CAIR NO annual trading program in accordance with subsection (h) orthe unit becomes a CAIR NO unit undersection \ ofthis rule, the CAIR NO opt-in unit shall remain subject to the requirements for a CAIR NO opt-in unit, even ifthe CAIR

### designate~ representative forthe CAIR NO opt-in unit fails to submit a CAIR permi(application that is required for renewal ofthe CAIR NO, opt-in permit. '

(f) The department shall issue or deny a CAIR opt-in permitfor a unit for which an initial application for a CAIR opt-in permit undersubsection (e) is submitted in accordance with the following: (1) The department and the U.S. EPAwill determine, on an interim basis, the sufficiency ofthe monitoring plan

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-32608000SFDA Page 25Indiana Register accompanying the initial application for a CAIR opt-in permit undersubsection (e). A monitoring pian is sufficient, for purposes of interim review, ifthe plan appears to contain information demonstrating that the NO emissions rate and heat input ofthe unit and all otherapplicable parameters are monitored and reported in ' accordance with section 11 ofthis rule. A determination ofsufficiency shall not be construed as acceptance or approval ofthe monitoring pian. (2) Ifthe department and the U.S. EPA determine that the monitoring plan is sufficient undersubdivision (1), the owneroroperatorshall monitorand report the NO emissions rate and the heat input ofthe unit and all otherapplicable parameters, in accordance with secti6n 11 ofthis rule, starting on the date ofcertification of the appropriate monitoring systems undersection 11 ofthis rule and continuing until a CAIR opt-in permit is denied under subdivision (8) or, ifa CAIR opt-in permit is issued, the date and time when the unit is withdrawn from the CAIR NO annual trading program in accordance with subsection (h). (3) The monitoring'and reporting under subdivision (2) shall include the entire control period immediately before the date on which the unit enters the CAIR NO annual trading program undersubdivision (9), during which period monitoring system availability must not b"e less than ninety percent (90%) undersection 11 ofthis rule and the unit must be in full compliance with any applicable state orfederal emissions oremissions-related requirements. (4) To the extent the NO emissions rate and the heat input ofthe unit are monitored and reported in accordance with section'11 ofthis ruie for one (1) or more control periods, in addition to the control period undersubdivision (3), during which control periods monitoring system availability is not less than ninety percent (90%) under section 11 ofthis ruie and the unit is in full compliance with any applicable state or federal emissions or emissions-related requirements and which control periods begin not more than three (3) years before the unit enters the CAIR NO annual trading program undersubdivision (9), such information shall be used as provided in subdivisions

### 15) and (6), (5) The unit's baseline heat input shall equal one (1) ofthe following:

(A) Ifthe unit's NO emissions rate and heat input are monitored and reported for only one control period, in accordance with sabdivisions (2) and (3), the unit's total heat input, in million British thermai units (MMBtu), for the control period. (B) Ifthe unit's NO emissions rate and heat input are monitored and reported for more than one control period, in

### accorda~ce with subdivisions (2) through (4), the average ofthe amounts ofthe unit's total heat input, in million British thermal units (MMBtu), forthe control periods undersubdivisions (3) and (4). (6) The unit's baseline NO emission rate shall equal one (1) ofthe following:

(A) Ifthe unit's NO

### emi~sions rate and heat input are monitored and reported for only one control period, in accordance with sabdivisions (2) and (3), the unit's NO emissions rate, in pounds per million British thermal units (lb/MMBtu), forthe control period. ' (B) Ifthe unit's NO emissions rate and heat input are monitored and reported for more than one control period, in

### accorda~ce with subdivisions (2) through (4), and the unit does not have add-on NO emission controls during any such control periods, the average ofthe amounts ofthe unit's NO emissiohs rate in pounds per million British thermal units (lb/MMBtu), forthe control periods undersubdivisions (3) and (4). 

### (C) Ifthe unit's NO emissions rate and heat input are monitored and reported for more than one control period, in

### accorda~ce with subdivisions (2) through (4), and the unit has add-on NO emission controls during any such control periods, the average ofthe amounts ofthe unit's NO emiss10ns rate in pounds per million British thermal units (lb/MMBtu), for such control periods during whichXthe unit has add-on NO emission controls. ' (7) Aftercalculating the baseline heat input and the baseline NO emissions rate forthe unit under subdivisions (5) and (6) and ifthe department determines that

### th~ CAIR designated representative shows that the unit meets the requirements fora CAIR NO opt-in unit In subsection (a) and meets the elements certified in subsection (e)(2), the department shall issue'a CAIR opt-in permit. The department shall provide a copy of the CAIR opt-in permit to the U.S. EPA, who will then establish a compliance account forthe source that includes the CAIR NO opt-in unit unless the source already has a compliance account. (8) Notwithstanding subdivisions (1) through (7), ifat anytime before issuance ofa CAIR opt-in permit for the unit, the department determines that the CAIR designated representative fails to showthat the unit meets the requirements for a CAIR NO opt-in unit in subsection (a) or meets the elements certified in subsection (e)(2), the department shall issue a'denial ofa CAIR opt-in permit for the unit. (9) A unitforwhich an initial CAIR opt-in permit is issued bythe department shall become a CAIR NO opt-in unit, and a CAIR NO unit, as ofthe laterofJanuary 1, 2009, orJanuary 1 ofthe first control period daring which such CAIR opt-in permit is issued. (10) Ifa CAIR designated representative requests, and the department issues, a CAIR opt-in permit providing for, allocation to a CAIR NO opt-in unit of CAIR NO allowances undersubsection 0)(4) and such unit is repowered after its date ofehtry into the CAIR NO §nnual trading program undersubdivision (9), the repowered unit shall be treated as a CAIR NO opr-in unit replacing the original CAIR NO opt-in unit, as ofthe date ofstart-up ofthe repowered unit's

### combu~tion chamber. Notwithstanding subdivision's (5) and 

### (6), as of

Dale: Jun 26.2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 26Indiana Register
the date ofstart-up, the repowered unitshall be deemed to have the same date ofcommencement of operation, date ofcommencement ofcommercial operation, baseline heat input, and baseline NO emission rate as the original CAIR NO opt-in unit, and the original CAIR NO opt-in unit shall no longerbe treated as a CAIR NO opt-in unit ora

### CA~R NO unit. ' 

# , ,
(g) The follOWing shall applyto the content of each CAIR opt-in permit: (1) Each opt-in permit shall contain: (A) All elements required fora complete CAIR permit application undersection 7(c) ofthis rule. (B) The certification in subsection (e)(2). (C) The unit's baseline heat input undersubsection (f)(5). (D) The unit's baseline NO emission rate under subsection (f)(6). (E) A statementwhetherth'l, unit is to be allocated CAIR NO allowances under subsection U)(3) or 0)(4), subjectto the conditions in subsections (f)(10) and (h). ' (F) A statementthat the unit maywithdrawfrom the CAIR NO annual trading program only in accordance with subsection (h). ' (G) A statementthat the unit is subjectto, and the owners and operators ofthe unit must complywith, the requirements ofsubsection (i). (2) Each CAIR opt-in permit is deemed to incorporate automaticallythe definitions undersection 2 ofthis rule and, upon recordation bythe U.S. EPA underthis section and sections 9 and 10 ofthis rule, every allocation, transfer, ordeduction ofCAIR NO allowances to orfrom the compliance account ofthe source that includes a CAIR NO opt-in unit covered by tile CAIR opt-in permit. (3) The CAIR opt-in permit shall be included, in a format prescribed bythe department, in the CAIR permitfor the source where the CAIR opt-in unit is located and in a Part 70 operating permit or FESOP.

(h) The following requirements must be satisfied in orderto withdraw an opt-in unitfrom the CAIR NO annual

### ~~~~: 

# ' (1) Except as provided undersubdivision (8), a CAIR NO opt-in unit maywithdrawfrom the CAIR NO annual trading program, but oniy ifthe department issues a nolif(cation to the CAIR designated representative'ofthe CAIR NO opt-in unit ofthe acceptance ofthe withdrawal ofthe CAIR NO opt-in unit in accordance with sUbdivisi6n (6). ' (2) In orderto withdraw a CAIR NO opt-in unit from the CAIR NO annual trading program, the CAIR designated representative ofthe CAIR NO opt-in unitshall submffto the departmenta request to withdraw effective as of midnight of December 31 ora specified calendaryear, which date must be at leastfour (4) years after December31 ofthe year ofentry intothe CAIR NO annual trading program undersubsection

. (f)(9). The request must be submitted not laterthan ninety (90)'days before the requested effective date of withdrawal. (3) Before a CAIR NO opt-in unit covered by a request undersubdivision (1) may withdrawfrom the CAiR NO annual trading pr&gram and the CAIR opt-in permit may be terminated undersubdivision (7), the following con'IJitions must be met: (A) Forthe control period ending on the date on which the withdrawal is to be effective, the source that includes the CAIR NO opt-in unit must meetthe requirement to hold CAIR NO allowances under section 4(c) ofthis rule and ca'hnot have any excess emissions. ' (B) Afterthe requirement for withdrawal underclause (A) is met, the U.S. EPA will deductfrom the compliance account ofthe source that includes the CAIR NO opt-in unit CAIR NO allowances equal in amountto, and allocated for, the same ora priorcontrol peri6d as any CAIR NO

### a~lowances allocated to the CAIR NO opt-in unit undersubsection 0) for any control period for which thE!'withdrawal is to be effective. Ifth'l,re are no remaining CAIR NO units at the source, the U.S. EPA will close the compliance account, and the owners and operators of

### th~ CAIR NO opt-in unit may submit a CAIR NO allowance transferfor any remaining CAIR NO allowances to anoiherCAIR NO allowance tracking sYstem in accordance with section 10 ofthis rJle. ' (4) Afterthe requirements forwithdrawal undersubdivisions (2) and (3) are met, Including deduction ofthe full amount ofCAIR NO allowances required, the departmentshall issue a notification to the CAIR designated representative ofthE!'CAIR NO opt-in unit ofthe acceptance ofthe withdrawal ofthe CAIR NO opt-in unit as ofmidnight on December31 

# ofthe calendaryearfor which the withdrawal was requested. ' (5) Ifthe requirements for withdrawal undersubdivisions (2) and (3) are not met, the departmentshall issue a notification to the CAIR designated representative ofthe CAIR NO opt-in unit that the CAIR NO opt-in unit's requestto withdraw is denied. Such CAIR NO opt-in unit shall con1inue to be a CAIR NO opt-iri'unit. (6) Afterthe department issues a notification u'ndersubdivision (4) that the requirements fur withdrawal have been met, the departmentshall revise the CAIR permit covering the CAIR NO opt-in unit to terminate the CAIR opt-in permit for such unit as ofthe effective date specified under

### subdiv~sion (4). The unitshall continue

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### Indiana Register

to be a CAIR NO opt-in unit until the effective date ofthe termination and shall complywith all requirements underthe CAIR

# rilo annual trading program conceming any control periods forwhich the unit is a CAIR NOx 

### opt-in unit, even ifsGch requirements arise or must be complied with afterthe withdrawal takes effect. (7) Ifthe departmentdenies the CAIR NO opt-in unit's request to withdraw, the CAIR designated representative maysubmit another reque€tto withdraw in accordance with subdivisions (2) and (3). (8) Notwithstanding subdivisions (1) through (7), a CAIR NO opt-in unit shall not be eligible to withdrawfrom the CAIR NO annual trading program ifthe CAIR designatea representative ofthe CAIR NO opt-in unit requests, and'the department issues, a CAIR NO opt-in permit providing for, allocation to th€CAIR NO opt-in unitofCAIR NO allowances undersubsection 

### 0)(4). x 

### (9) Once a CAIR'NO opt-in unit withdraws from the CAIR NO annual trading program and its CAIR opt-in permit is terminated Onderthis section, the CAIR designated

### r~presentative may notsubmit another application for a CAIR opt-in permit undersubsection (e) for such CAIR NO opt-in unit before the date that is four (4) years afterthe date on which the withdrawal became effective. Sud\ new application fora CAIR opt-in permit shall be treated as an initial application for aCAIR opt-in permit undersubsection (f).

(i) When a CAIR NO opt-in unit becomes a CAIR NO unit undersection 1 ofthis rule, then the CAIR designated

### representati~e shall notify, in writing, the depa"rtmentand the U.S. EPAofsuch change in the CAIR NO opt-in unit's regulatory status, within thirty (30) days ofsuch change. Ifthere is a change in the regulatory stafus, the department and the U.S. EPAwill take the following actions concerning the CAIR NO opt-in source: (1) When the CAIR NO opt-in unit becomes a CAIR NO unit undersection 1 ofthis rule, the"department shall revise the CAIR NO opt-in unit's CAIR opt-in permit to

### ~eet the requirements ofa CAIR permit undersection 7(d) and (7)(e) ofthfs rule, and remove the CAIR opt-in permit provisions, as ofthe date on which the CAIR NO opt-in unit becomes a CAIR NO unit undersection 1 ofthis rule. (2) The 

## u.s. EPAwill deduct from

### th~ compliance account ofthe source that includes the CAIR NO opt-in unit that becomes a CAIR NO unit undersection 1 ofthis rule, CAIR NO allowances equal in amount

### t~ and allocated forthe same or priorcontrol period as follows: x (A) Any CAIR NO allowances allocated to the CAIR NO opt-in unit undersubsection 

### 0) for any control period afterthe d§te on which the CAIR NO opt-in unit b'ecomes a CAIR NO unit undersection 1 ofthis 

### rule. x x 

### (B) Ifthe date on which the CAIR NO opt-in unit becomes a CAIR NO unit undersection 1 ofthis rule is not December31, the CAIR NO all00ances allocated to the CAIR NO x 

### opt-in unit under subsection (j) for the control period that includes the date on which the CAIR NO opt-in '(mit becomes a CAIR NO unit under section 1 ofthis rule, multiplied by the ratio ofthe numberofdays, in the control period, starting

### ~ith the date on which the CAIR NO opt-in unit becomes a CAIR NO unit under section 1 ofthis rule divided by the total numberofdays in the 60ntrol period and rounded to the'hearestwhole allowance as appropriate. (3) The CAIR designated representative shall ensure thatthe compliance account ofthe source that includes the CAIR NO opt-in unitthat becomes a CAIR NO unit undersection 1 ofthis rule contains the CAIR NO allowances

### n~cessary for completion ofthe deductfon undersubdivision (2). x 

### (4) Forevery control period afterthe date on which the CAIR NO opt-in unit becomes a CAIR NO unit under section 1 ofthis rule, the CAIR NO opt-in unit shall be allocated tAIR NO allowance allocations Onder section 8(c) ofthis rule. x x (5) Notwithstanding subdivision (4), ifthe date on which the CAIR NO opt-in unit becomes a CAIR NO unit undersection 1 ofthis rule is not

### daA~aFY 1, December31, the followfng amount of CAIR NO allowan6es shall be allocated to the CAIR NO opt-in unit, as a CAIR NO unit, undersection 8(c) ofthis r1Jle forthe control period that includes the date 

### on which the CAIR NO

### ~pt-in unit becomes a CAIR NO unit under section 1 ofthis rule: x x

(A) the amount of CAIR NO allowances otherwise allocated to the CAIR NO opt-in unit, as a CAIR NO unit, undersection 8(c) of

### th~s rule forthe control period; x x (B) multiplied by the ratio ofthe number ofdays, in the control period, starting with the date on which the CAIR NO opt-in unit becomes a CAIR NO unit under section 1 ofthis rule, divided bythe total numberof days in th'l, control period; and x (C) rounded to the nearestwhole allowance, as appropriate.

(j) The department shall allocate CAIR NO allowances to CAIR NO opt-in sources as follows: (1) When the CAIR opt-in permit is issued Gndersubsection (f)(7),

### tt~e department shall allocate CAIR NO allowances to the CAIR NO opt-in unit, and submitto the U.S. EPAthe allocation forthe control period inx


### which a CAIR NO opt-in

### un~t enters the CAIR NO annual trading program undersubsection (1)(9), in

. accordance with sXubdivision (3) or (4). x 

### (2) By not laterthan October31 ofthe control period in which a CAIR NO opt-in unit enters the CAIR NO annual trading program under subsection (1)(9) and October 31 ofeach

### y~ar thereafter, the departmentstfall

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### Indiana Register
allocate CAIR NO allowances to the CAIR NO opt-in unit, and submitto the U.S. EPAthe allocation forthe control period tha(includes such submission d€adlineand in which the unit is a CAIR NO opt-in unit, in accordance with subdivision (3) or (4). x (3) Foreach control period forwhich a CAIR NO opt-in unit is to be allocated CAIR NO allowances, the department shall allocate in accordance with the"following procedures: x

(A) The heat input, in million British thermal units (MMBtu), used forcalculating the CAIR NO allowance allocation shall be the lesserofthe following: x

(i) The CAIR NO opt-in unit's baseline heat input determined undersubsection (f)(9). (Ii) The CAIR Nd' opt-in unit's heat input, as determined in accordance with section 11 ofthis rule, forthe immediately prior"control period, exceptwhen the allocation is being calculated forthe control period in which the CAIR NO opt-in unit enters the CAIR NO annual trading program under subsection (f)(9). (B) The NO emissioA rate, in million British thermal Snits (MMBtu), used for calculating CAIR NO allowance a110cations shall be the lesserofthe following: x

(i) The CAIR NO opt-in unit's baseline NO emissions rate, in pounds per million British thermal units (lb/MMBtu),

### dete~mined undersubsection

### ~)(6) and multiplied by seventy percent (70%). (ii) The most stringent state orfederal NO emissions limitation applicable to the CAIR NO opt-in unitat anytime during the control period forwhic'h CAIR NO allowances are to be allocated. x (C) The department shall allocate CAIR NO allowanc€sto the CAIR NO opt-in unit in an amount equaling the heat input underclause (A), multiplied by the NO emission rate und€rclause (B), divided bytwo thousand (2,000) pounds perton, and rounded to th€nearestwhole allowance as appropriate. (4) Notwithstanding subdivision (3), ifthe CAIR designated representative requests, and ifthe department issues a CAIR opt-in permit (based on a demonstration ofthe intentto repower stated undersubsection (e)(5» providing for, allocation to a CAIR NO opt-in unii ofCAIR NO allowances underthis subdivision, subject to the conditions in subsections (f)(1

## d) and (h), the departmefit shall allocate to the CAIR NO opt-in unitas follows: x

(A) Foreach control period in 2009 through 2014 the CAIR NOxopt-in unit isto be allocated CAIR NOx allowances as follows:

(i) The heat input, in million British thermal units (MMBtu), used for calculating CAIR NO allowance allocations shall be determined as described in subdivision (3)(A), x (ii) The NO emission rate, in pounds per million British thermal units (lb/MMBtu), used for calculating CAIR NO allowa'hce allocations shall be the lesserofthe following:



### (AA) The CAIR NO opt-in unit's baseline NO emissions rate, in pounds per million British thermal units (lb/MMBtu), determlned undersubsection

### (f)(~), (BB) The most stringent state orfederai NO emissions limitation applicable to the CAIR NO opt-in unitat any time during the control period in which

### t~e CAIR NO opt-in unit enters the CAIR NO anxnual trading program undersubsection (f)(9). x x (iii) The departmentshall allocate CAIR NO allowances to the CAIR NO opt-in unit in an amount equal to the heat input under item (i), multiplied by ttie NO emission rate under

### it~m (ii), divided bytwo thousand (2,000) pounds perton, and rounded to the neare'Stwhole allowance as appropriate. (B) Foreach control period in 2015 and thereafterthe CAIR NOxopt-in unit is to be allocated CAIR NOx allowances as follows:

(i) The heat input, in million British thermal units (MMBtu), used for calculating the CAIR NO allowance allocations shall be determined as described in subdivision (3)(A). x 

### (Ii) The NO emission rate, in pounds per million British thermal units (lb/MMBtu), used forcalculating the CAIR NO gllowance allocation shall be the lesserofthe following:

(AA)

### Fift~en-hundredths (0.15) pounds per million British thermal units (lb/MMBtu). (BB) The CAIR NO opt-in unit's baseline NO emissions rate, in pounds per million British thermal units (lb/MMBtu), determlned under subsection

### (f)(~). (CC) The most stringent state orfederal NO emissions limitation applicable to the CAIR NO opt-in unit at any time during the control period forwhich CAIR NO allowances are to be allocated. x (iii) The departmentshall allocate CAIR NO allowanc€sto the CAIR NO opt-in unit in an amount equaling the heat input item (i), multiplied bythe NOxemission rate under item

### (ii)~ divided by two thousand (2,000) pounds perton, and rounded to the nearestwhole allowance as appropriate. (5) The U.S. EPAwill record, in the compliance account ofthe source that includes the CAIR NO opt-in unit, the CAIR NO allowances allocated by the departmentto the CAIR NO opt-in unit under

### subdivii~ion (1). (6) By Decem"ber 1 ofthe control period in which a CAIR NO opt-in

### un~ enters the CAIR NO annual trading program undersubsection (f)(9) and December 1 ofeach yegrthereafter, the U.S. EPAwill r&cord, in the compliance account ofthe source that includes the CAIR NO opt-in unit, the CAIR NO allowances allocated bythe departmentto the CAIR NO opt-in unit undersubdivis10n (2). x x

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'These documents are incorporated by reference. Copies may be obtained from the Government Printing Office, 732 North Capitol Street NW, Washington, D.C. 20401 orare available for review and copying atthe Indiana Department of Environmental Management, Office ofAir Quality, Indiana Government Center-North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204. (AirPollution ControlBoard; 326 lAC24-1-12; filedJan 26, 2007, 10:25a.m.: 20070221-IR-326050117FRA; errata filedJan 29,2007,2:43 p.m.: 20070221-IR-326050117ACA)

SECTION 6. 326 lAC 24-2-2 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-2-2 Definitions Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-11-2; IC 13-15; IC 13-17

Sec. 2. For purposes ofthis rule, the definition given for a term in this rule shall control in any conflict between 326 lAC 1-2 and this rule. In addition to the definitions provided in IC 13-11-2 and 326 lAC 1-2, the following definitions applythroughout this rule, unless expressly stated otherwise or unless the context clearly implies otherwise: (1) "Account number" means the identification numbergiven by the U.S. EPAto each CAIR S02 allowance tracking system account. (2) "Acid rain emissions limitation" means a limitation on emissions of sulfurdioxide or nitrogen oxides under the acid rain program. (3) "Acid rain program" means a multistate sulfurdioxide and nitrogen oxides air pollution control and emission reduction program established bythe U.S. EPA underTitle IVofthe Clean AirAct and 40 CFR 72 through 78'. (4) "Allocate" or "allocation" means, with regard to CAIR S02 allowances issued underthe acid rain program, the determination by the U.S. EPA ofthe amount of such CAIR S02 allowances to be initially credited to a CAIR S02 unit orotherentity and, with regard to CAIR S02.allowances issued under provisions ofa state implementation plan that are approved under40 CFR 51.1:<4(0)(1), 40 CFR 51.124(0)(2), or40 CFR 51.124(r)', or40 CFR 

### 9r, the determination by a permitting authority ofthe amount of S02 allowances to be initially credited to a CAIR S02 unit orotherentity. (5) "Allowance transferdeadline" means, for a control period, midnight of March 1 (if it is a business day), or midnight ofthe first business day thereafter (if March 1 is not a business day), immediately following the control period and is the deadline by which a CAIR S02 allowance transfer must be submitted for recordation in a CAIR S02 source's compliance account in orderto be used to meet the source's CAIR S02 emissions limitation for such control period in accordance with section 8U) and 8(k) ofthis rule. (6) "Alternate CAIR designated representative" means, for a CAIR SO source and each CAIR S02 unit atthe
source, the natural person who is authorized by the owners and operaTors ofthe source and all such units at the source in accordance with sections 6 and 11 ofthis rule, to act on behalf ofthe CAIR designated representative in matters pertaining to the CAIR S02 trading program. Ifthe CAIR S02source is also a CAIR NO source, then this natural person shall be the same person as the alternate CAIR aesignated

### rep~esentative underthe CAIR NO annual trading program. Ifthe CAIR SO source is also a CAIR NO

ozone season source, then this natural person shall be the same person aslhe alternate CAIR designaled representative underthe CAIR NO ozone season trading program. Ifthe CAIR S02 source is also subjectto the acid rain program, then this natural person shall be the same person as the alternate designated representative underthe acid rain program. Ifthe CAIR S02 source is also subject to the mercury budget trading program, then this natural person shail be the same person as the alternate mercury designated representative underthe mercury budget trading program. (7) "Automated data acquisition and handling system" or "DAHS" means that component ofthe continuous emission monitoring system, orotheremissions monitoring system approved for use under section 10 ofthis rule, designed to interpret and convert individual output signals from pollutant concentration monitors, fiow·· monitors, diluent gas monitors, and othercomponent parts ofthe monitoring system to produce a continuous record ofthe measured parameters in the measurement units required by section 10 ofthis rule. (8) "Biomass" means any ofthe following:

(A) Organic material grown forthe purpose of being converted to energy. (B) Organic byproduct of agriculture that can be converted into energy. 

### (e) Material that:

(il can be converted into energy and is nonmerchantable for other purposes; 

### (Ii) is segregated from other nonmerchantable material; and

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### (iii) is:

(AA) a forest-related organic residue, including mill residues, precommercial thinnings, slash, brush, or byproductfrom conversion oftrees to merchantable material; or (BB) awood material, including pallets, crates, dunnage, manufacturing and construction materials (otherthan pressure-treated, chemically-treated, or painted wood products), and landscape or right-of-way trimmings. 

## \Sl (9) "Boiler" means an enclosed fossil- orother-fuel-fired combustion device used to produce heat and to transfer heatto recirculating water, steam, orother medium. 

## !:91 (10) "Bottoming-cycle cogeneration unit" means a cogeneration unit in which the energy input to the unit is first used to produce useful thermal energy and at least some ofthe reject heatfrom the useful thermal energy application or process is then used for electricity production. 

## f-W1 (11) "CAIR authorized account representative" means, with regard to a general account, a responsible natural person who is authorized, in accordance with sections 6, 8, and 11 ofthis rule, to transferand otherwise dispose ofCAIR S02 allowances held in the general account and, with regard to a compliance account, the CAIR designated representative ofthe source. 

## f4+l (12) "CAIR designated representative" means, for a CAIR S02 source and each CAIR SO unit atthe
source, the natural person who is authorized by the owners and operators ofthe source and airsuch units.at the source, in accordance with sections 6 and 11 ofthis rule, to represent and legally bind each ownerand operator in matters pertaining to the CAIR S02 trading program. Ifthe CAIR S02 source is also a CAIR NO
source, then this natural person shall be the same person as the CAIR designated representative underthe" CAIR NO annual trading program. Ifthe CAIR S02 source is also a CAIR NO ozone season source, then this natur§1 person shall be the same person as the CAIR designated represen"tative underthe CAIR NO

ozone season trading program. Ifthe CAIR S02 source is also subjectto the acid rain program, then this' natural person shall be the same person as the designated representative underthe acid rain program. Ifthe CAIR S02 source is also subject to the mercury budgettrading program, then this natural person shall be the

same person as the mercury designated representative underthe mercury budgettrading program. 

## f4-21 (13) "CAIR NO annual trading program" means a multistate nitrogen oxides air pollution control and emission reduction program approved and administered bythe U.S. EPA in accordance with 326 lAC 24-1; 40 CFR 96, Subparts AAthrough 

### II'and 40 CFR 51.123*; orestablished by the U.S. EPA in accordance with 40 CFR 97, Subparts AAthrough 

### II'and 40 CFR 51.123(p)* and 40 CFR 52.35*, as a means of mitigating interstate transport offine particulates and nitrogen oxides. (14) "CAIR NO ozone season source" means a source that is subjectto the CAIR NO ozone season 

### t d· , , ra mg program. 

## f'I41 (15) "CAIR NO ozone season trading program" means a multistate nitrogen oxides air pollution control and emission reducf,on program approved and administered bythe U.S. EPA in accordance with 326 lAC 24-**~;** 40 CFR 96, Subparts AAAA through 1111* and 40 CFR 51.123*; orestablished by the U.S. EPA in accordance with 40 CFR 97, Subparts AAAAthrough 1111* and 40 CFR 51.123(ee)* and 40 CFR 52.35*, as a
means of mitigating interstate transport ofozone and nitrogen oxides. f4J;j (16) "CAIR NO source" means a source that is subjectto the CAIR NO annual trading program. f4J;j (17) "CAIR pertnit" means the legally binding and federally enforceable 0ritten document, or portion of such document, issued bythe department undersection 7 ofthis rule, including any permit revisions, specifying the CAIR S02 trading program requirements applicable to a CAIR S02 source, to each CAIR S02 unit atthe source, and to the owners and operators and the CAIR designated representative ofthe source and each such unit. 

## f1-71 (18) "CAIR S02 allowance" means a limited authorization issued by the U.S. EPA underthe acid rain program, or by a permitting authority under provisions of a state implementation plan that are approved under 40 CFR 51.124(0)(1), 40 CFR 51.124(0)(2), or40 CFR 51.124(r)*, or under40 CFR 97*, to emit sulfurdioxide during the control period ofthe specified calendaryearfor which the authorization is allocated orof any calendaryearthereafter underthe CAIR S02 trading program as follows: (A) Forone (1) CAIR SO allowance allocated for a control period in a year before 2010, one (1) ton of sulfurdioxide, except as

### ~rovided in section 11 (k) ofthis rule. (B) Forone (1) CAIR SO allowance allocated for a control period in 2010 through 2014, fifty-hundredths (0.50) ton of sulfur

### dioXi~, except as provided in section 11 (k) ofthis rule. (C) Forone (1) CAIR S02 allowance allocated for acontrol period in 2015 or later, thirty-five hundredths (0.35) ton of sulfurdiOXide, except as provided in section 11 (k) ofthis rule. (D) An authorization to emit sulfurdioxide that is not issued underthe acid rain program, provisions ofa state implementation plan that are approved under40 CFR 51.124(0)(1),40 CFR 51.124(0)(2), or40 CFR 51.124(r)*, or under40 CFR 97*, shall not be a CAIR S02 allowance. 

## f1-S1 (19) "CAIR S02 allowance deduction" or "deduct CAIR S02 allowances" means the permanent withdrawal of CAIR S02 allowances by the U.S. EPA from a compliance account, for example, in orderto accountfor a specified numberoftons oftotal sulfur dioxide emissions from all CAIR S02 units at a CAIR S02 source for a

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control period, determined in accordance with section 10 ofthis rule, orto account forexcess emissions. 

### fW1 (20) "CAIR SO allowances held" or "hold CAIR SO allowances" means the CAIR S02 allowances recorded bythe U.S. EPA, orsubmitted to the U.S. EPA

## ~or recordation, in accordance with sections 8, 9, and 11 ofthis rule or40 CFR 73', in a CAIR SO allowance tracking system account. 

## t2G7 (21) "CAIR S02 allowance tracking system" means the system by which the U.S. EPA records allocations, deductions, and transfers of CAIR S02 allowances underthe CAIR S02 trading program. This is the same system as the allowance tracking system under40 CFR 72.2' bywhich tne U.S. EPA records allocations, deduction, and transfers of acid rain S02 allowances underthe acid rain program. (22) "CAIR S02 allowance tracking system account" means an account in the CAIR S02 allowance tracking system established by the U.S. EPAfor purposes of recording the allocation, holding, transferring, or deducting ofCAIR S02 allowances. Such allowances will be allocated, held, deducted, ortransferred only as whole allowances. (23) "CAIR S02 emissions limitation" means, for a CAIR SO source, the tonnage equivalent, in S02 emissions in a control period, ofthe CAIR S02 allowances available for deduction forthe source undersection 80) and 8(k) ofthis rule forthe control period. 

## ti!<l1 (24) "CAIR S02 source" means a source that includes one (1) or more CAIR S02 units. 

## \i!4l (25) "CAIR S02 trading program" means a multistate sulfurdioxide air pollution control and emission reduction program approved and administered bythe U.S. EPA in accordance with this rule; 40 CER 96, Subparts AAA through III' and 40 CFR 51.124'; or established bythe U.S. EPA in accordance with 40 CFR 97, SubpartsAAA through III' and 40 CFR 51.124(r)' and 40 CFR 52.36', as a means of mitigating interstate transport offine particulates and sulfurdioxide. (26) "CAIR S02 unit" means a unitthat is subjectto the CAIR S02.trading program undersection 1 ofthis rule and, except for purposes ofsection 3 ofthis rule, a CAIR S02 opt-In unit undersection 11 ofthis rule. (27) "Coal" means any solid fuel classified as anthracite, bituminous, subbituminous, or lignite. 

## t2'A (28) "Coal-derived fuel" means anyfuel, whether in a solid, liquid, orgaseous state, produced bythe mechanical, thermal, or chemical processing of coal. (29) "Coal-fired" means combusting any amount of coal or coal-derived fuel, alone, or in combination with any amount ofany otherfuel. 

## t2G7 (30) "Cogeneration unit" means a stationary, fossil-fuel-fired boilerorstationary, fossil-fuel-fired combustion turbine:

(A) having equipment used to produce electricity and useful thermal energyfor industrial, commercial, heating, or cooling purposes through the sequential use ofenergy; 

### aRE! (B) producing during the twelve (12) month period starting.on the date the unitfirst produces electricity and during any calendaryear afterthe calendar in which the unitfirst produces electricity:

(i) for a topping-cycle cogeneration unit:

(AA) useful thermal energy not less than five percent (5%) oftotal energy output; and (BB) useful powerthat, when added to one-half (y,) of useful thermal energy produced, Is not less than forty-two and one-half percent (42.5%) oftotal energy input, ifuseful thermal energy produced is fifteen percent (15%) or more oftotal energy output, or not less than forty-five percent (45%) oftotal energy input, ifuseful thermal energy produced is less than fifteen percent (15%) oftotal energy output; and (ii) for a bottoming-cycle cogeneration unit, useful power not less than forty-five percent (45%) oftotal energy input; and 

### (e) provided that the total energy input under clause (B)(i)(B6) and (6)(ii) shall equal the unit's total energy inputfrom all fuel except biomass ifthe unit is a boiler. 

## f3Gl (31) "Combustion turbine" means: (A) an enclosed device comprising a compressor, a combustor, and aturbine and in which the flue gas resulting from the combustion offuel in the combustor passes through the turbine, rotating the turbine; and (B) ifthe enclosed device underclause (A) is combined cycle, any associated duct burner, heat recovery steam generator and steam turbine. 

## t&1-l (32) "Commence commercial operation" means, with regard to a unit, the following: (A) To have begun to produce steam, gas, orother heated medium used to generate electricityfor sale or use, including test generation, except as provided in sections 3 and 11 (f)(10) ofthis rule, subject to the following:

(i) Fora unitthat is a CAIR S02 unit under section 1 ofthis rule on the later of November 15, 1990, orthe date the unit commences commercial operation as defined in this clause and that subsequently undergoes

a physical change, otherthan replacement ofthe unit by a unit at the same source, such date shall remain the date ofcommencement ofcommercial operation ofthe unit, which shall continue to be treated as the

same unit. (ii) Fora unit that is a CAIR S02 unit undersection 1 ofthis rule on the later of November 15, 1990, orthe date the unit commences commercial operation as defined in this clause and that is subsequently replaced by a unit atthe same source (for example, repowered), such date shall remain the replaced unit's date of

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commencement ofcommercial operation, and the replacement unit shall be treated as a separate unitwith

a separate date forcommencement ofcommercial operation as defined in this clause orclause (B) as appropriate. (B) Notwithstanding clause (A) and except as provided in section 3 ofthis rule, for a unitthat is not a CAIR S02 unit undersection 1 ofthis rule on the laterof November 15, 1990, ordate the unit commences commercial operation as defined in clause (A), the unit's date forcommencement ofcommercial operation shall be the date on which the unit becomes a CAIR S02 unit undersection 1 ofthis rule, subjectto the following:

(i) Fora unitwith a date for commencement ofcommercial operation as defined in this clause and that subsequently undergoes a physical change (otherthan replacement ofthe unit by a unit at the same source) such date shall remain the date ofcommencement ofcommercial operation, which shall continue to be treated as the same unit. (ii) Fora unitwith adate for commencement of commercial operation as defined in this clause and that is subsequently replaced by a unit atthe same source (for example, repowered), such date shall remain the replaced unit's date ofcommencement of commercial operation, and the replacement unit shall be treated

as a separate unitwith a separate date for commencement ofcommercial operation as defined in this clause, orclause (B), as appropriate. 

## t&21 (33) "Commence operation" means the following: (A) To have begun any mechanical, chemical, orelectronic process, including, with regard to a unit, start-up ofa unit's combustion chamber, except as provided in section 11 (f)(10) ofthis rule. (B) Fora unitthat undergoes a physical change (otherthan repiacement ofthe unit by a unit atthe same source) afterthe date the unit commences operation as defined in clause (A), such date shall remain the date ofcommencement ofoperation ofthe unit, which shall continue to be treated as the same unit. (C) Fora unit that is replaced by a unit atthe same source (forexample, repowered) afterthe date the unit

commences operation as defined in clause (A), such date shall remain the replaced unit's date of commencement, and the replacement unit shall be treated as a separate unitwith a separate date for commencement of operation as defined in this clause orclause (A) or (B), as appropriate, except as provided in section 11(f)(10) ofthis rule. (34) "Common stack means" a single fiue through which emissions from two (2) or more units are exhausted. (35) "Compliance account" means a CAIR SO allowance tracking system account, established by the U.S. EPAfor a CAIR S02 source subjectto an aciJrain emissions limitations under40 CFR 73.31(a)' or40 CFR 73.31(b)' orfor any otherCAIR S02 source undersection 8 or 11 ofthis rule, in which any CAIR S02 allowance allocations forthe CAIR S02 units atthe source are initially recorded and in which are held any CAIR S02 allowances available for use for a control period in orderto meetthe source's CAIR S02 emissions limitation In accordance with section 8(j) and 8(k) ofthis rule. 

## \6&1 (36) "Continuous emission monitoring system" or "CEMS" means the equipment required under section 10 ofthis rule to sample, analyze, measure, and provide, by means of readings recorded at least once every fifteen (15) minutes, using an automated data acquisition and handling system (DAHS), a permanent record of sulfurdioxide emissions, stackgas volumetric flow rate, stackgas moisture content, and oxygen orcarbon dioxide concentration, as applicable, in a mannerconsistent with 40 CFR 75'. The following systems are the principal types ofcontinuous emission monitoring systems required undersection 10 ofthis rule: (A) a flow monitoring system, consisting of a stackflow rate monitorand an automated data acquisition and handling system and providing a permanent, continuous record ofstackgas volumetric flow rate, in standard cubic feet per hour (scfh); (B) a sulfurdioxide monitoring system, consisting ofa S02 pollutant concentration monitorand an automated data acquisition and handling system and prOViding a permanent, continuous record of S02 emissions, in parts per million (ppm); (C) a moisture monitoring system, as defined in 40 CFR 75.11(b)(2)' and providing a permanent, continuous record ofthe stackgas moisture content, in percent H20; (D) a carbon dioxide monitoring system, consisting ofa CO2pollutant concentration monitor, oran oxygen monitorplus suitable mathematical equations from which the CO2concentration is derived, and an automated data acquisition and handling system and providing a permanent, continuous record of CO2 emissions, in percent CO2; and (E) an oxygen monitoring system, consisting ofan 02 concentration monitorand an automated data acquisition and handling system and providing a permanent, continuous record of 02' in percent 02' 

## \6&1 (37) "Control period" means the period beginning January 1 ofa calendaryear, except as proviaed in section 4(c)(2) ofthis rule, and ending on December 31 ofthe same year, inclusive. (38) "Emissions" means air pollutants exhausted from a unit orsource into the atmosphere, as measured, recorded, and reported to the U.S. EPA by the CAIR designated representative and as determined bythe U.S. EPA in accordance with section 10 ofthis rule.

Dale: Jun 26,2009 9:29:21AM EDT DIN: 200B0123-IR·3260B0005FDA Page 33Indiana Register (39) "Excess emissions" means anyton, or portion ofa ton, of sulfurdioxide emitted bythe CAIR S02 units at a CAIR S02 source during a control period that exceeds the CAIR S02 emissions limitation forthe
source, provided that any portion ofaton of excess emissions shall be treated as one (1) ton ofexcess emissions. 

### f69j (40) "Fossil fuel" means natural gas, petroleum, coal, or any form of soiid, liquid, or gaseous fuel derived from such materiaL 

## \4G1 (41) "Fossil-fuel-fired" means, with regard to a unit, combusting any amount of fossil fuel in any calendar year. 

## \4+1 (42) "General account" means a CAIR S02 allowance tracking system account, established undersection 8 ofthis rule, that is not a compliance account. 

## \421 (43) "Generator" means a device that produces electricity. 

## \431 (44) "Heat input" means, with regard to a specified period oftime, the product, in million British thermal units per unit oftime (MMBtu/time) ofthe gross calorific value of the fuel, in British thermal units per pound (Btu/lb), divided by one million (1,000,000) British thermal units per million British thermal units (Btu/MMBtu) and multiplied by the fuel feed rate into a combustion device, in pounds offuel per unit oftime (Ib offuel/time),

as measured, recorded, and reported to the U.S. EPA bythe CAIR designated representative and determined bythe U.S. EPA in accordance with section 10 ofthis rule and excluding the heat derived from preheated combustion air, recirculated flue gases, or exhaust from othersources. 

## t441 (45) "Heat input rate" means the amount ofheat input, in million British thermal units (MMBtu), divided by unit operating time, in hours, or, with regard to a specificfuei, the amount ofheat input attributed to the fuel, in million British thermal units (MMBtu), divided bythe unit operating time, in hours, during which the unit combusts the fueL 

### (4&t (46) "Life-of-the-unit, firm power contractual arrangement" means a unit participation powersales agreement underwhich a utility or industrial customer reserves, or is entitled to receive, a specified amount or percentage of nameplate capacity and associated energy generated by any specified unit and pays its proportional amount ofsuch unil's total costs, pursuant to a contract: (A) for the life ofthe unit; (B) for a cumulative term of no less than thirty (30) years, including contracts that permit an election for early termination; or (C) for a period no less than twenty-five (25) years orseventy percent (70%) ofthe economic useful life of the unit determined as ofthe time the unit is built, with option rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end ofthe period. 

### (4&t (47) "Maximum design heat input" means the maximum amount offuel per hour, in British thermal units per hour (Btu/hr), that a unit is capable ofcombusting on a steady state basis as ofthe initial installation ofthe unit as specified bythe manufacturerofthe unit.

. 

### (47l (48) "Mercury budget trading program" means a multistate mercury air pollution control and emission reduction program approved and administered bythe U.S. EPA in accordance with 40 CFR 60, Subpart HHHH* and 40 CFR 60.24(h)(6)", or established bythe U.S. EPA underthe Clean AirAct, Section 111, as a
means of reducing national mercury emissions. 

## f48J (49) "Monitoring system" means any monitoring system that meets the requirements ofsection 10 ofthis rule, including a continuous emissions monitoring system, an alternative monitoring system, or an excepted monitoring system under40 CFR 75". 

## \4G1 (50) "Most stringent state orfederal S02 emissions limitation" means, with regard to a unit, the lowest S02 emissions iimitation, in terms of pounds per million British thermal units (lb/MMBtu), that is applicable to the unit understate orfederal law, regardless ofthe averaging period to which the emissions limitation applies. 

### (eG) (51) "Nameplate capacity" means, starting from the initial installation of a generator, the maximum electrical generating output, in megawatt electrical (MWe), that the generator is capable of producing on a steady state basis and during continuous operation (when not restricted by seasonal or other deratings) as of such installation as specified by the manufacturerofthe generatoror, starting from the completion ofany subsequent physical change in the generator resulting in an increase in the maximum electrical generating output, in megawatt electrical (MWe), that the generator is capable ofproducing on a steady state basis and

..: during continuous operation (when not restricted by seasonal orother deratings) such increased maximum amount as ofsuch completion as specified bythe person conducting the physical change. 

### (&t) (52) "Operator" means any person who operates, controls, or supervises a CAIR S02 unit or a CAIR S02

source and shall include, but not be limited to, any holding company, utility system, or plant managerof such a unitor source, (53)**"Owne~'** means any ofthe following persons: (A) With regard to a CAIR S02 source or a CAIR S02 unit at a source, respectively, any ofthe following:

(i) aflY Holderofany portion ofthe legal or equitable title in a CAIR S02 unit at the source orthe CAIR S02 unit. (Ii) aflY Holderofa leasehold interest in a CAIR S02 unit atthe source orthe CAIR S02 unit. 6f

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 34Indiana Register (iii) 6flY Purchaserofpowerfrom a CAIR S02 unit atthe source orthe CAIR S02 unit undera life-of-the-unit, firm powercontractual arrangement; provided that, unless expressly provided for in a leasehold agreement, ownershall not include a passive lessor, ora person who has an equitable interest through such lessor, whose rental payments are not based, eitherdirectly or indirectly, on the revenues or income from such CAIR S02 unit. Elf (B) With regard to any general account, any person who has an ownership interestwith respect to the CAIR SO allowances held in the general account and who is subjectto the binding agreementforthe CAIR auti\orized account representative to represent the person's ownership interest with respect to CAIR S02 allowances. 

## t631 (54) "Permitting authority" means the state air pollution controi agency, local agency, other state agency,
orotheragency authorized bythe U.S. EPAto issue or revise permits to meetthe requirements ofthe CAIR NO annual trading program ie ae6aFsaee6 'NitA s6etiae 7 af IAis**F~le** or, if no such agency has been so autAorized, the U.S. EPA. 

## t641 (55) "Potential electrical output capacity" means thirty-three percent (33%) of a unit's maximum design heat input, divided by three thousand four hundred thirteen (3,413) Btu/kilowatt hour, divided by one thousand (1,000) kilowatt hour/megawatt hour, and multiplied by eightthousand seven hundred sixty (8,760) hours/year. 

## teet (56) "Receive" or "receipt of' means, when referring to the department orthe U.S. EPA, to come into possession ofa document, information, orcorrespondence, whether sent in hard copy or by authorized electronic transmission, as indicated in an official log, or by a notation made on the document, information, or correspondence, bythe department orthe U.S. EPA in the regular course of business. (ge1 (57) "Recordation", "record", or "recorded" means, with regard to CAIR S02 allowances, the movement of CAIR S02 allowances bythe U.S. EPA into or between CAIR S02 allowance tracking system accounts, for purposes of allocation, transfer, ordeduction. 

## te+1 (58) "Reference method" means any direct test method ofsampling and analyzing for an air pollutant as specified in 40 CFR 75.22'. 

### (681 (59) "Replacement", "replace", or "replaced" means, with regard to a unit, the demolishing of a unit, orthe permanent shutdown and permanent disabling of a unit, and the construction ofanother unit (the replacement unit) to be used instead ofthe demolished or shutdown unit (the replaced unit). 

## fW1 (60) "Repowered" means, with regard to a unit, replacement ofa coal-fired boilerwith one (1) ofthe following coal-fired technologies atthe same source as the coal-fired boiler: (A) atmospheric or pressurized fiuidized bed combustion; (B) integrated gasificationcombined cycle; (C) magnetohydrodynamics; (0) direct and indirect coal-fired turbines; (E) integrated gasification fuel cells; or (F) as determined bythe U.S. EPA in consultation with the Secretary of Energy, a derivative of one (1) or
more ofthe technologies underclauses (A) through (E) and any othercoal-fired technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greaterwaste reduction relative to the performance oftechnology in widespread commercial use as ofJanuary 1, 2005. 

## fW1 (61) "Sequential use ofenergy" means: (A) for a topping-cycle cogeneration unit, the use of reject heatfrom electricity production in a useful thermal energy application or process; or

. (B) for a bottoming-cycle cogeneration unit, the use of reject heat from useful thermal energy application or process in electricity production. 

## t6-17 (62) "Serial number" means, for a CAIR S02 allowance, the unique identification number assigned to each CAIR SO allowance bythe U.S. EPA.

. 

### (6i11 (63) "SoliJ1waste incineration unit" means a stationary, fossil-fuel-fired boileror stationary, fossil-fuel-fired combustion turbine that is a solid waste incineration units as defined in the Clean AirAct, Section 129(g)(1). 

## t631 (64) "Source" means all buildings, structures, or installations located in one (1) or more contiguous or adjacent properties undercommon control ofthe same person or persons. For purposes of Section 502(c) of the Clean AirAct, a source, including a source with multiple units, shall be considered a single facility. 

## t641 (65) "Submit" or "serve" means to send ortransmit a document, information, orcorrespondence to the person specified in accordance with the applicable rule:

(A) in person; (B) by United States Postal Service; or (C) by other means ofdispatch ortransmission and delivery. Compliance with any submission orservice deadline shall be determined bythe date ofdispatch, transmission, or mailing and notthe date of receipt bythe department or U.S. EPA. 

## teet (66) "Title V operating permit" or "Part 70 operating permit" means a permit issued under326 lAC 2-7. (ge1 (67) "Title V operating permit regulations" means the rules under 326 lAC 2-7.

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## te+l (68) "Ton" means two thousand (2.000) pounds. Forthe purpose of determining compliance with the CAIR S02.emissions limitation. total tons ofsulfurdioxide emissions for a control period shall be calculated as the sum ot all recorded hourlyemissions. orthe mass equivalent ofthe recorded hourly emission rates. in accordance with section 10 ofthis rule. butwith any remaining fraction ofa ton equal to orgreaterthan fifty-hundredths (0.50) tons deemed to equal one (1) ton and any remaining fraction ofa ton less than fifty-hundredths (0.50) tons deemed to equal zero (0) tons. 

## \681 (69) "Topping-cycle cogeneration unit" means acogeneration unit in which the energy inputto the unit is first used to produce useful power. including electricity. and at least some ofthe reject heatfrom the electricity production is then used to provide useful thermal energy. 

## f691 (70) "Total energy input" means. with regard to a cogeneration unit. total energy ofall forms supplied to the cogeneration unit. excluding energy produced by the cogeneration unit itself. Each form of energy supplied shall be measured bythe lower heating vatue ofthat form of energy calculated as follows: LHV

### =HHV -10.55(W

### + 9H)

LHV 

### = Lower heating value offuel in Btu/hr. HHV 

### = Higher healing value offuel in Btu/hr. W 

### = Weight 

### % of moisture in fuel. H 

## = Weight % of hydrogen in fuel. (71) "Total energy output" means. with regard to a cogeneration unit. the sum of useful powerand useful thermal energy produced bythe cogeneration unit. 

## f7B (72) "Unit" means a stationary. fossil-fuel-fired boileror combustion turbine orotherstationary. fossil-fuel-fired combustion device. 

### fh!1 (73) "Unit operating day" means a calendarday in which a unit combusts any fuel. 

## f7a1 (74) "Unit operating hour" or "hourof unit operation" means an hour in which a unit combusts any fuel. 

## fi'41 (75) "Useful power" means. with regard to a cogeneration unit. electricityor mechanical energy made available for use. excluding anysuch energy used in the power production process. which process includes. but is not limited to. anyon-site processing ortreatment offuel combusted atthe unit and anyon-site emission controls. 

## f761 (76) "Useful thermal energy" means. with regard to a cogeneration unit. thermal energy that is: (A) made available to an industrial orcommercial process, not a power production process. excluding any heat contained in condensate return or makeup water; (B) used in a heating application (forexample, space heating ordomestic hotwater heating); or (C) used in a space cooling application (that is. thermal energy used byan absorption chiller). 

## f761 (77) "Utility powerdistribution system" means the portion ofan electricity grid owned oroperated by a utility and dedicated to delivering electricity to customers.

"These documents are incorporated by reference. Copies may be obtained from the Government Printing Office. 732 North Capitol Street NW, Washington. D.C. 20401 orare available for review and copying atthe Indiana Department of Environmental Management. Office ofAir Quality. Indiana Government Center-North. Tenth Floor. 100 North Senate Avenue. Indianapolis. Indiana 46204. (AirPollution ControlBoard; 326 lAC24-2-2; fifedJan 26. 2007. 10:25a.m.: 20070221-/R-326050117FRA; errata fifedJan 

### 29. 2007. 

### 2:43 p.m.: 20070221-IR-326050117ACAI

SECTION 7. 326 lAC 24-2-7 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-2-7 Permit requirements Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-15; IC 13-17

Sec. 7. (a) Foreach CAIR S02 source required to have afederally enforceable permit. the permit shall include

a CAIR permit administered by the departmentas follows: (1) The CAIR portion ofthe Part 70 permit under 326 lAC 2-7 shall be administered in accordance with 326 lAC 2-7 orthe CAIR portion ofthe federally enforceable state operating permit (FESOP) shall be administered in accordance with 326 lAC 2-8. as applicable. except as provided otherwise bythis section

orsections 3and 11 ofthis rule. (2) Each CAIR permit. including a draft or proposed CAIR permit. ifapplicable. shall contain. with regard to the CAIR S02 source and the CAIR S02 units atthe source covered bythe CAIR permit. all applicable CAIR S02

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 36Indiana Register trading program, CAIR NO annual trading program, and CAIR NO ozone season trading program requirements and shall be complete and separable portion ofthe"part 70 operating permit or FESOP.

(b) Requirements for the submission of CAIR permit applications are as follows: (1) The CAIR designated representative ofany CAIR S02 source required to have a Part 70 operating permit

or FESOP shall submit to the department a complete CAIR permit application undersubsection (c) for the

source covering each CAIR S02 unit at the source at leasttwo hundred seventy (270) days before the laterof January 1,2010, orthe date on which the CAIR S02 unit commences commercial operation, except as provided in section 11(e) ofthis rule. (2) Fora CAIR SO source required to have a Part 70 operating permit or FESOP, the CAIR designated representative shan submit a complete CAIR permit application undersubsection (c) for the source covering each CAIR S02 unit atthe source to renew the CAIR permit in accordance with 326 lAC 2-7-4(a)(1)(D) or 326 lAC 2-8-3(h), as applicable, except as provided in section 11(e) ofthis rule.

(c) IR addilioR 10 Ihe**re~"ireRleRts** 

### 01328 lAG 

### 2 7 

### 4(0), A complete CAIR permit application shall include the following elements concerning the CAIR S02 source for which the application is submitted: (1) Identification ofthe CAIR SO source. (2) Identification of each CAIR S02 unit at the CAIR S02 source. (3) The standard requirements undersection 4 ofthis rUle.

(d) IR additioR to the**re~"ireRleRIs** "Rder 

### 328 li,G 

### 2 7, Each CAIR permit shall contain, in a format prescribed by the department, all elements required for a complete CAIR permit application undersubsection (c).



### (e) Each CAIR permit is deemed to incorporate automaticallythe definitions ofterms undersection 2 ofthis rule and, upon recordation by .the U.S. EPA, undersection 8, 9, or 11 ofthis rule, every allocation, transfer, or**dedu~tion** ofa CAIR S02 allowance to orfrom the compliance account ofthe CAIR S02 source covered by the permit.

(f) The initial CAIR permit covering a CAIR unitfor which a complete CAIR permit application is timely submitted undersubsection (b) shall become effective upon issuance.

(g) The term ofthe CAIR permit shall be set bythe department, as necessary to facilitate coordination ofthe renewal ofthe CAIR permit with issuance, revision, or renewal ofthe CAIR S02 source's Part 70 operating permit

or FESOP.

(h) Except as provided in subsection 

### (e), the department shall revise the CAIR permit, as necessary, in accordance with the permit modification and revision provisions under 326 lAC 2-7 or 326 lAC 2-8, as applicable. (AirPollution ControlBoard; 326 lAC24-2-7: filedJan 26, 2007, 10:25a.m.: 20070221-IR-326050117FRAJ

SECTION 8. 326 lAC 24-2-8 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-2-8 CAIR S02 allowance tracking system Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-15; IC 13-17

Sec. 8. (a) Except as provided in section 11 (f)(7) ofthis rule, upon receipt of a complete certificate of representation undersection 6(h) ofthis rule, the U.S. EPAwill establish a compliance account for the CAIR S02

source for which the certificate of representation was submitted unless the source already has a compliance account.

(b) Any person may apply to open a general account for the purpose of holding and transferring CAIR S02 allowances. An application for a general account may designate one (1 )-<md only one (1) CAIR authorized account representative and one (1) and only one (1) alternate CAIR authorized account representative who may

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act on behalfofthe CAIR authorized account representative. The agreement bywhich the alternate CAIR authorized account representative is selected shall include a procedure for authorizing the alternate CAIR authorized account representative to act in lieu ofthe CAIR authorized account representative. The establishment ofthe general account shall be subject to the following:

. (1) A complete application fora general account shall be submitted to the U.S. EPA and shall include the following elements in a format prescribed by the U.S. EPA: (A) The following information concerning the CAIR authorized account representative and any alternate CAIR authorized account representative:

(i) Name. 

### (iI) Mailing address. (Iii) E-mail address, ifany. (iv) Telephone number. (v) Facsimile transmission number, ifany. (B) Organization name and type oforganization, ifapplicable. (C) A list ofall persons subjectto a binding agreementforthe CAIR authorized account representative and any alternate CAIR authorized account representative to represent their ownership interestwith respect to the CAIR S02 allowances held in the general account. (0) The following certification statement bythe CAIR authorized account representative and any alternate CAIR authorized account representative: "I certifythat I was selected as the CAIR authorized account representative orthe alternate CAIR authorized account representative, as applicable, by an agreementthat is binding on all persons who have an ownership interestwith respect to CAIR SO allowances held in the general account. I certifythat I have all the necessary authorityto carry out my duaes and responsibilities underthe CAIR S02 trading program on behalfof such persons and that each such person shall be fully bound by my representations, actions, inactions, orsubmissions and by any orderordecision issued to me by the U.S. EPAor a court regarding the general account.". (E) The signature ofthe CAIR authorized account representative and any alternate CAIR authorized account representative and the dates signed. (F) Unless otherwise required bythe department orthe U.S. EPA, documents of agreement referred to in the application for a general account shall not be submitted to the department orthe U.S. EPA. Neitherthe department northe U.S. EPAshall be underany obligation to review orevaluate the sufficiency of such documents, ifsubmitted. (2) Upon receipt bythe U.S. EPA of a complete application for a general account under subdivision (1), the following shall apply: (A) The U.S. EPAwill establish a general ac.count forthe person or persons forwhom the application is submitted. (B) The CAIR authorized account representative and any alternate CAIR authorized account representative forthe general account shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each person who has an ownership interestwith respect to CAIR S02 allowances held in the general account in all matters pertaining to the CAIR S02 trading program, notwithstanding any agreement between the CAIR authorized account representative orany alternate CAIR authorized account representative and such person. Any such person shall be bound by any orderordecision issued to the CAIR authorized account representative orany alternate CAIR authorized account representative bythe U.S. EPAora court regarding the general account. 

### (C) Any representation, action, inaction, orsubmission by any alternate CAIR authorized account representative shall be deemed to be a representation, action, inaction, or submission bythe CAIR authorized account representative. (0) Each submission concerning the general account shall be submitted, signed, and certified bythe CAIR authorized account representative orany alternate CAIR authorized account representative forthe persons having an ownership interestwith respect to CAIR S02 allowances held in the general account. Each such submission shall include the following certification statement bythe CAIR authorized account representative

orany alternate CAIR authorized account representative: "I am authorized to make this submission on behalfofthe persons having an ownership interestwith respect to the CAIR S02 allowances held in the general account. 

### 1certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those Individuals with primary responsibility forobtaining the information, I certify that the statements and information are to the best ofmy knowledge and belieftrue, accurate, and complete. 

### 1am aware that there

are significant penalties for submitting false statements and information oromitting required statements and information, including the possibility offine or imprisonment.".

. (E) The U.S. EPA will accept oract on a submission concerning the general account only ifthe submission._ has been made, signed, and certified in accordance with clause (0). 'i (3) The follOWing shall applyto changing the CAIR authorized account representative oralternate CAIR

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authorized account representative, and changes in persons with ownership interest: (A) The CAIR authorized account representative for a general account may be changed at anytime upon receipt bythe U.S. EPAofa superseding complete application for a general account undersubdivision (1). Notwithstanding any such change, all representations, actions, inactions, and submissions bythe previous CAIR authorized account representative before the time and date when the U.S. EPA receives the superseding application for a general account shall be binding on the new CAIR authorized account representative and the persons with an ownership interestwith respect to the CAIR S02 allowances in the general account. (B) The alternate CAIR authorized account representative for a general account may be changed at any time upon receipt by the U.S. EPAof a superseding compiete application for a general account under subdivision (1). Notwithstanding any such change, all representations, actions, inactions, and submissions bythe previous alternate CAIR authorized account representative before the time and date when the U.S. EPA receives the superseding application for a general accountshall be binding on the new alternate CAIR authorized account representative and the persons with an ownership interestwith respect to the CAIR S02 allowances in the general account. 

### (C) In the event a person having an ownership interestwith respect to CAIR SO allowances in the general account is not included in the list of such persons in the application for a generaraccount, such person shall be deemed to be subjectto and bound by the application for a general account, the representation, actions, inactions, and submissions ofthe CAIR authorized account representative and any alternate CAIR authorized account representative ofthe account, and the decisions and orders ofthe U.S. EPAoracourt,

as ifthe person were included in such list. (D) Within thirty (30) days following any change in the persons haVing an ownership interestwith respect to CAIR S02 allowances in the general account, inciuding the addition ofa new person, the CAIR authorized account representative orany alternate CAIR authorized account representative shall submit a revision to the application for a general account amending the list ofpersons having an ownership interestwith respect to the CAIR S02 allowances in the general accountto include the change. (4) Once a complete application for a general account undersubdivision (1) has been submitted and received, the U.S. EPAwill rely on the application unless and until a superseding complete application for a general account undersubdivision (1) is received bythe U.S. EPA. (5) Except as provided in subdivision (3)(A) or (3)(B), no objection orothercommunication submitted to the U.S. EPA concerning the authorization, orany representation, action, inaction, orsubmission ofthe CAIR authorized account representative orany alternate CAIR authorized account representative for a general account shall affect any representation, action, inaction, or submission ofthe CAIR authorized account representative orany alternate CAIR authorized account representative orthe finality ofany decision ororder by the U.S. EPA underthe CAIR S02 trading program. (6) The U.S. EPAwill not adjudicate any private legal dispute concerning the authorization orany representation, action, inaction, orsubmission oUhe CAIR authorized account representative orany alternative CAIR authorized account representative for a general account, including private legal disputes concerning the proceeds of CAIR SO allowance transfers. (7) The following shall applyto delegJtion bythe CAIR authorized account representative and alternate CAIR authorized account representative: (A) A CAIR authorized account representative maydelegate, to one (1) or more natural persons, his or her authorityto make an electronic submission to the U.S. EPA provided for or required under sections 8 and 9 ofthis rule. (B) An alternate CAIR authorized account representative maydelegate, to one (1) or more natural persons, his or herauthorityto make an electronic submission to the U.S. EPA provided for or required under sections 8 and 9 ofthis rule. (C) In orderto delegate authorityto make an electronic submission to the U.S. EPA in accordance with clause (A) or (B), the CAIR authorized account representative orthe alternate CAIR authorized account representative, as appropriate, must submitto the U.S. EPAa notice ofdelegation, in a format prescribed bythe U.S. EPA, that includes the following elements:



### (0 The name, address, e-mail address, telephone number, and facsimile transmission number, ifany, of the following:

(M) The CAIR authorized accQ,vnt representative oralternate CAIR authorized account representative. (BB) Each natural person, referred to as an "agent". (i1) Foreach such natural person, a list ofthe type ortypes of electronic submissions underclause (A) or (B) forwhich authority is delegated to him or her. (iii) The following certification statements by such CAIR authorized account representative oralternate CAIR authorized account representative:

(M) "I agree that any electronic submission to the U.S. EPA that is by an agent identified in this notice of delegation and of atype listed for such agent in this notice of delegation and that is made when I am a

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CAIR authorized account representative oralternate CAIR authorized representative, as appropriate, and before this notice of delegation is superseded by another notice of delegation under326 lAC 24-2- a(b)(7)(D) shall be deemed to be an electronic submission by me,", (88) "Until this notice ofdelegation is superseded by another notice ofdelegation under326 lAC 24-2- a(b)(7)(D), I agree to maintain an e-mail account and to notifythe U,S, EPA immediately ofany change in my e-mail address unless all delegation ofauthority by me under326 lAC 24-2-8(b)(7) is terminated.". (D) A notice ofdelegation submitted underclause (C) shall be effective, with regard to the CAIR authorized account representative oralternate CAIR authorized account representative identified in such notice, upon receipt of such notice by the U.S. EPA and until receipt by the U.S. EPA of a superseding notice of delegation submitted by such CAIR authorized account representative oralternate CAIR authorized account representative, as appropriate. The superseding notice ofdelegation may replace any previously identified agent, add a new agent, oreliminate entirely any delegation of authority. (E) Any electronic submission covered by the certification in clause (C)(iii)(AA) and made in accordance with

a notice of delegation effective under clause (D) shall be deemed to be an electronic submission bythe CAIR authorized account representative oralternate CAIR authorized account representative submitting such notice ofdeiegation.

(c) The U.S. EPAwill assign a unique identifying numberto each account established under subsection (a) or (b).

(d) Following the establishment ofa CAIR SO allowance tracking system account, all submissions to the U.S. EPA pertaining to the account, including, but not ITmited to, submissions concerning the deduction ortransfer of CAIR S02 allowances in the account, shall be made only bythe CAIR authorized account representative forthe account.

(e) After a compliance account is established under subsection (a) or40 CFR 73.31(a) or40 CFR 73.31(b)', the U.S. EPA will record in the compliance account any CAIR SO allowance allocated to any CAIR S02 unit at the source for each ofthe thirty (30) years starting the laterof 20fo orthe year in which the compliance account is established and any CAIR S02 allowance allocated for each ofthe thirty (30) years starting the laterof 2010 or the year in which the compliance account is established and transferred to the source in accordance with section g ofthis rule or40 CFR 73, Subpart D'.

(f) 

### In 2011 and each yearthereafter, after U.S. EPA has completed all deductions undersubsection (k)(1), the U.S. EPAwill record in the compliance account any CAIR SO allowance allocated to any CAIR S02 unit at the

source forthe new thirtieth year, that is, the yearthat is thirty 

### (:JO) years afterthe calendaryearforwhich such deductions are orcould be made, and any CAIR S02.allowance allocated forthe new thirtieth year and transferred to the source in accordance with section Bofthis rule or40 CFR 73, Subpart D'.

(g) Aftera general account is established undersubsection (b) or40 CFR 73.31(cr, the U.S. EPAwill record in the general account any CAIR SO allowance allocated for each ofthe thirty (30) years starting the laterof 2010 orthe year in which the general account is established and transferred to the general account in accordance with section 9 ofthis rule or40 CFR 73, Subpart D'.

(h) 

### In 2011 and each yearthereafter, after U.S. EPA has completed all deductions undersubsection (k)(1), the U.S. EPAwill record in the general account any CAIR S02 allowance allocated forthe new thirtieth year, that is, the yearthat is thirty (30) years afterthe calendaryearfor which such deductions are orcould be made, and transferred to the general account in accordance with section 9 ofthis rule or40 CFR 73, Subpart D'.

(i) When recording the allocation ofCAIR S02 allowances for a CAIR S02 unit in a compliance account, the U.S. EPAwill assign each CAIR S02 allowance a unique identification numberthat shall include digits identifying the year ofthe control period for which the CAIR S02 allowance is allocated.



### U) The CAIR SO allowances are available to be deducted for compliance with a source's CAIR S02 emissions limitationlora control period in a given calendaryear only ifthe CAIR S02 allowances: (1) were allocated forthe control period in the year or a prioryear; and (2) are held in the compliance account as ofthe aliowance transfer deadline forthe control period or are transferred into the compliance account by a CAIR S02 allowance transfer correctly submitted for recordation

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 40Indiana Register
undersection 9(a) through 9(f) ofthis rule bythe allowance transferdeadline forthe control period.

(k) The following shall applyto deductions for purposes ofcompliance with a source's emissions limitation: (1) Following the recordation, in accordance with section 9(d) through 9(f) ofthis rule, of CAIR SOz allowance transfers submitted for recordation in a source's compliance account bythe allowance transfer deadline for a control period, the U.S. EPAwill deductfrom the compliance account CAIR SOz allowances available under subsection 0) in orderto determine whetherthe source meets the CAIR SO emissions limitation forthe control period, as follows: Z (A) Fora CAIR SOz Source subjectto an acid rain emissions limitation, the U.S. EPAwill, in the following order:

(i) Deductthe amount of CAIR SO allowances, available undersubsection 0) and not issued by the department undersection 110) of !his rule, that is required under40 CFR 73.35(b)" and 40 CFR 73.35(c)". Ifthere are sufficient CAIR SOz allowances to complete this deduction, the deduction shall be treated as satisfying the requirements of40 CFR 73.35(b)" and 40 CFR 73.35(c)*. (ii) Deductthe amount of CAIR SO allowances, available undersubsection 0) and not issued bythe department undersection 110) of

### t~is rule, that is required under40 CFR 73.35(d)* and 40 CFR 77.5*. If there are sufficient CAIR SOzallowances to complete this deduction, the deduction shall be treated as satisfying the requirements 0140 CFR 73.35(d)* and 40 CFR 77.5*.

. (iii) Treating the CAIR SOz allowances deducted under item (ii) as also being deducted underthis item, deduct CAIR SOz allowances available undersubsection 0), including any issued bythe department under section 110) of !liIS rUle, in orderto determine whetherthe source meets the CAIR SOz emissions limitation forthe control period, as follows:

(AA) until the tonnage equivalent ofthe CAIR SOz allowances deducted equals, orexceeds in accordance with subdivisions (2) and (3), the numberoftons oftotal sulfurdioxide emissions, determined in accordance with section 10 ofthis rule, from all CAIR SOz units atthe source forthe control period; or (BB) ifthere are insufficient CAIR SOz allowances to complete the deductions in subitem (AA), until no
more CAIR SOz allowances available undersubsection (j), inclUding any issued bythe department under section 110) ofthis rule, remain in the compliance account. (B) Fora CAIR SOz source not subjectto an acid rain emissions limitation, the U.S. EPAwill deduct CAIR SOz allowances available undersubsection (j), including any issued bythe department undersection 11(j) oftnis rule, in orderto determine whetherthe source meets the CAIR SOz emissions limitation forthe control period, as follows:

(i) until the tonnage equivalent ofthe CAIR SOz allowances deducted equals, orexceeds in accordance with subdivisions (2) and (3), the numberoftons oftotal sulfurdioxide emissions, determined in accordance with section 10 ofthis rule, from all CAIR SOz units atthe source forthe control period; or (ii) ifthere are insufficient CAIR SOzallowances to complete the deductions in item (i), until no more CAIR SOz allowances available undersuosection 0), including any issued bythe department undersection 11(j) oftnis rule, remain in the compliance account. (2) The CAIR authorized account representative for a source's compliance account may request that specific CAIR SOz allowances, identified by serial number, in the compliance account be deducted for emissions or
excess emissions for a control period in accordance with subdivision (1) or (4). Such request shall be submitted to the U.S. EPA by the allowance transferdeadline forthe control period and include, in aformat prescribed bythe U.S. EPA, the identification ofthe CAIR SOz source and the appropriate serial numbers. (3) The U.S. EPAwill deduct CAIR SO allowances undersuBdivision (1) or (4) from the source's compliance account, in the absence oran identification or in the case ofa partial identification of CAIR SOz allowances by serial number undersubdivision (2), on a first-in, first-out (FIFO) accounting basis in the following order: (A) Any CAIR SOz allowances that were allocated to the units atthe source for a control period before 2010, in the orderof recordation. (B) Any CAIR SOz allowances thatwere allocated to any entityfor acontrol period before 2010 and transferred and recorded in the compliance account under section 9 ofthis rule or40 CFR 73, Subpart 0*, in the orderof recordation. (C) Any CAIR SOz allowances that were allocated to the units atthe source for a control period during 2010 through 2014, in tne orderof recordation. (D) Any CAIR SOz allowances that were allocated to any entityfor acontrol period during 2010 through 2014 and transferred and recorded in the compliance account undersection 9 ofthis rule or40 CFR 73, Subpart 0*, in the orderof recordation. (E) Any CAIR SOz allowances that were allocated to the units atthe source for a control period in 2015 or later, in the orderof recordation. (F) Any CAIR SOz allowances that were allocated to any entityfor acontrol period in 2015 or laterand

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 41Indiana Register
transferred and recorded in the compliance account undersection 9 ofthis rule or

### 40 CFR 

### 73, Subpart D*, in the orderof recordation. (4) After making the deductions forcompliance under subdivision (1) for a control period in a calendaryear in which the CAIR S02 source has excess emissions, the U.S. EPAwill deduct from the source's compliance accountthe tonnage equivalent in CAIR SO allowances, allocated forthe control period in the immediately following calendaryear, including any issuea bythe department under section 

### 11 U) ofthis rule, equal to, or exceeding in accordance with subdivisions (2) and (3), three (3) times the numberoftons ofthe source's

excess emissions minus, ifthe source is subject to an acid rain emission limitation, the amount ofthe CAIR SO allowances required to be deducted undersubdivision (1 )(A)(ii). (5) J,.ny allowance deduction required undersubdivision (4) shall not affect the liability ofthe owners and operators ofthe CAIR S02 source orthe CAIR S02 units atthe source for any fine, penalty, orassessment, or their obligation to comply with any other remedy, forthe same violations, as ordered underthe Clean AirAct or applicable state law. (6) The U.S. EPAwill record in the appropriate compliance account all deductions from such an account under subdivisions 

### (1), (4), and (5) and section 

### 11 ofthis rule. (7) The U.S. EPA may review and conduct independent audits concerning any submission underthe CAIR S02 trading program and make appropriate adjustments ofthe information in the submissions. (8) The U.S. EPA maydeduct CAIR S02 allowances from ortransfer CAIR S02 allowances to a source's compliance account based on the information in the submissions, as adjusted undersubdivision (7), and record such deductions and transfers.

(I) CAIR SO allowances may be banked for future use ortransfer in acompliance account ora general account. Any CAIR S0.2.allowance that is held in a compliance account ora general account shall remain in such account unless and until the CAIR S02 allowance is deducted ortransferred undersubsection U), (k), or (m) or section 9 or 11 ofthis rule.

(m) The U.S. EPA may, at his or hersole discretion and on his or her own motion, correct any error in any CAIR S02 allowance tracking system account. Within ten 

### (10) business days of making such correction, the U.S. EPAwill notify the CAIR authorized account representative forthe account.

(n) The CAIR authorized account representative ofa general account maysubmitto the U.S. EPAa request to close the account, which shall include a correctly submitted allowance transfer under section 9(a) through 9(f) of this rule for any CAIR S02 allowances in the accountto one (1) or more otherCAIR S02 allowance tracking system accounts.

(0) Ifa general account has no allowance transfers in orout ofthe account for a twelve 

### (12) month period or longerand does not contain any CAIR S02 allowances, the U.S. EPA may notify the CAIR authorized account representative forthe accountthat the account shall be closed following twenty 

### (20) business days afterthe notice is sent. The account will be closed afterthe twenty 

### (20) day period unless, before the end ofthe twenty 

### (20) day period, the U.S. EPA receives a correctly submitted transfer of CAIR S02 allowances into the account undersection 9(a) through 9(f) ofthis rule ora statement submitted bythe CAIR authorized account representative demonstrating to the satisfaction ofthe U.S. EPA good cause as to whythe account should not be closed.

*These documents are incorporated by reference. Copies may be obtained from the Government Printing Office, 

### 732 North Capitol Street NW, Washington, D.C. 

### 20401 or are available for review and copying atthe Indiana Department of Environmental Management, Office ofAir Quality, Indiana Government Center-North, Tenth Floor, 

### 100 North Senate Avenue, Indianapolis, Indiana 

### 46204. (AirPollution ControlBoard; 

### 326 lAC

### 24-2-8; filedJan 26,2007, 10;25a.m.: 20070221-IR-326050117FRA)

SECTION 9. 

### 326 lAC 

### 24-2-11 IS AMENDED TO READ AS FOLLOWS:



### 326 lAC 

### 24-2-11 CAIR 502 opt-in units Authority: IC 

### 13-14-8; IC 

### 13-17-3-4; IC 

### 13-17-3-11 Affected: IC 

### 13-15; IC 

### 13-17

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR·326080005FDA Page 42Indiana Register

Sec. 11. (a) A CAIR S02 opt-in unit must be a unitthat meets the following requirements: (1) Is located in Indiana. (2) Is not a CAIR S02 unit undersection 1 ofthis rule and is not covered by a retired unit exemption that is in effect undersection j ofthis rule. (3) Is not covered by a retired unit exemption that is in effect under40 CFR 72.8' and is not an opt-in source under40 CFR 74'. (4) Has or is required orqualified to have a Part 70 operating permit orotherfederally enforceable permit. (5) Vents all ofits S02 emissions to a stackand can meetthe monitoring, record keeping, and reporting requirements of section 10 ofthis rule.

(b) Except as otherwise provided sections 1, 2, 4 through 7, and 8 through 10 ofthis rule, a CAIR S02 opt-in unit shall be treated as a CAIR S02 unitfor purposes ofapplying such sections ofthis rule.

(c) Solelyfor purposes ofapplying, as provided in this section, the requirements of section 10 to a unitfor which a CAIR opt-in permit application is submitted and notwithdrawn and a CAIR opt-in permit is not yet issued

ordenied underthis section, such unit shall be treated as a CAIR S02 unit before issuance ofa CAIR opt-in permit for such unit.

(d) Any CAIR SO opt-in unit, and any unit forwhich a CAIR opt-in permit application is submitted and not withdrawn and a CAtR opt-in permit is notyet issued ordenied underthis section, located at the same source as
one (1) or more CAIR S02 units shall have the same CAIR designated representative and alternate CAIR designated representative as such CAIR S02 units.

(e) The CAIR designated representative ofa unit meeting the requirements for a CAIR S02 opt-in unit in subsection (a) may applyfor an initial CAIR opt-in permit at anytime, except as provided undersubsection (h)(8) and (h)(9), and, in order to apply, must submitthe following: (1) A ccmplete CAIR permit application undersection 7(c) ofthis rule. (2) A certification, in a formatspecified by the department, that the unit:

(A) is not a CAIR S02 unit undersection 1 ofthis rule and is not ccvered by a retired unit exemption that is in effect undersection 3 ofthis rule; (B) is not covered by a retired unit exemption that is in effect under40 CFR 72.8'; (C) is not and, so long as the unit is a CAIR S02 opt-in unit, shall not become, an opt-in source under40 CFR 74'; (D) vents all ofits SO emissions to a stack; and

. (E) has documented

### ~eat inputfor more than eight hundred seventy-six (876) hours during the six (6) months immediately preceding submission ofthe CAIR permit application undersection 7(c) ofthis rule. (3) A monitoring plan in accordance with section 10 ofthis rule. (4) A complete certificate of representation undersection 6(h) ofthis rule consistent with subsection (d), if no CAIR designated representative has been previously designated forthe source that includes the unit. (5) A statement, in a format specified bythe department, whetherthe CAIR designated representative requests that the unit be allocated CAIR SO allowances under subsection (j)(3) or 0)(4), subjectto the conditions in subsections (f)(10) and (h)(8). allocation undersubsection 0)(4) is requested, this statement shall include a statementthatthe owners and operators ofthe unit intend to repowerthe unit before January 1, 2015, and thatthey will provide, upon request, documentation demonstrating such intent. The CAIR designated representative ofa CAIR S02 opt-in unit shall submit a complete CAIR permit application undersection 7(c) ofthis rule to renew the CAIR opt-in unit permit in accordance with the department's regulations for Part 70 operating permits. Unless the department issues a notification of acceptance ofwithdrawal ofthe CAIR S02.opt-in unitfrom the CAIR S02 trading program in accordance with subsection (h) orthe unit becomes a CAlK SO unit undersection 1 oftnis rule, the CAIR S02 opt-in unit shall remain subjectto the requirements for a CAIR S02 opt-in unit, even ifthe CAIR designatea representative forthe CAIR S02 opt-in unit fails to submit aCAIR permit application that is required for renewal ofthe CAIR opt-in permit.

(f) The department shall issue ordeny a CAIR opt-in permitfor a unitforwhich an initial application for a CAIR opt-in pemnit undersubsection (e) is submitted in accordance with the following: (1) The department and the U.S. EPAwill determine, on an interim basis, the sufficiency ofthe monitoring plan accompanying the initial application for a CAIR opt-in permit undersubsection (e). A monitoring plan is sufficient, for purposes of interim review, ifthe plan appears to contain information demonstrating that the S02 emissions rate and heat input and all other applicable parameters ofthe unit and all otherapplicable

Dale: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 43Indiana Register parameters are monitored and reported in accordance with section 10 ofthis rule. A determination of sufficiency shall not be construed as acceptance orapproval ofthe monitoring plan. (2) Ifthe department and the U.8. EPAdetermine that the monitoring plan is sufficient undersubdivision (1), the owneroroperatorshall monitorand report the 802 emissions rate and the heat input ofthe unit and all otherapplicable parameters, in accordance with section 10 ofthis rule, starting on the date ofcertification of the appropriate monitoring systems undersection 10 ofthis rule and continuing until a GAIR opt-in permit is denied undersubdivision (8) or, ifa GAIR opt-in penmit is issued, the date and time when the unit is withdrawn from the GAIR 802 trading program in accordance with subsection (h). (3) The monitoring and reporting undersubdivision (2) shall include the entire control period immediately before the date on which the unit enters the GAIR 80 trading program undersubdivision (9), during which period monitoring system availability must not be less1han ninety percent (90%) undersection 10ofthis rule and the unit must be in full compliance with any applicable state orfederal emissions oremissions-related requirements. (4) To the extentthe 802 emissions rate and the heat input ofthe unit are monitored and reported in accordance with section 10 ofthis rule for one (1) or more control periods, in addition to the control period under subdivision (3), during which control periods monitoring system availability is not less than ninety percent (90%) undersection 10 ofthis rule and the unit is in full compliance with any applicable state or federal emissions oremissions-related requirements and which control periods begin not more than three (3) years before the unit enters the GAIR**80~trading** program undersubdivision (9), such information shall be used as provided in subdivisions (5) and (0). (5) The unit's baseline heat input shall equal: (A) ifthe unit's 802 emissions rate and heat input are monitored and reported for only one (1) control period, in accordance witli subdivisions (2) and (3), the unit's total heat input, in million British thermal units (MMBtu), forthe control period; or (B) ifthe unit's 802 emissions rate and heat input are monitored and reported for more than one (1) control period, in accordance with subdivisions (2) through (4), the average ofthe amounts ofthe unit's total heat input, in million British thermal units (MMBtu), forthe control periods undersubdivisions (3) and (4). (6) The unit's baseline 802 emission rate shall equal one (1) ofthe following: (A) 

### Ifthe unit's 802 emissions rate and heat input are monitored and reported for only one (1) control period, in accordance with subdivisions (2) and (3), the unit's 802 emissions rate, in pounds per million British thermal units (lb/MMBtu), forthe control period. (B) Ifthe unit's 802 emissions rate and heat input are monitored and reported for more than one (1) control period, in accordance with subdivisions (2) through (4), and the unit does not have add-on 802 emission controls during any such control periods, the average ofthe amounts ofthe unit's 80 emissions rate, in pounds per million British thermal units (lb/MMBtu), forthe control periods undersubdivisions (3) and (4). (G) Ifthe unit's 802 emissions rate and heat input are monitored and reported for more than one control period, in accordance with subdivisions (2) through (4), and the unit has add-on 802 emission controls during any such control periods, the average ofthe amounts ofthe unit's 802 emissions rate, in pounds per million British thermal units (lb/MMBtu), for such control periods during whicli the unit has add-on 802 emission controls. (7) After calculating the baseline heat input and the baseline 802 emissions rate forthe unit under subdivisions (5) and (6) and ifthe department determines that the GAIR designated representative shows that the unit meets the requirements for a CAIR 802 opt-in unit in subsection (a) and meets the elements certified in subsection (e)(2), the department shall issue a CAIR opt-in permit. The department shall provide a copy of the GAIR opt-in penmitto the U.8. EPA, who will then establish a compliance accountforthe source that includes the CAIR 80 opt-in unit unless the source already has a compliance account. (8) Notwithstanding subdivisions (1) through (7), if at anytime before issuance ofa CAIR opt-in permit forthe unit, the department determines that the CAIR designated representative fails to show that the unit meets the requirements for a GAIR opt-in unit in subsection (a) or meets the elements certified in subsection (e)(2), the department shall issue a denial of a CAIR 802 opt-in permitforthe unit. (9) A unitfor which an initial CAIR opt-in penmlt is issued bythe department shall become a GAIR 802 opt-in unit, and a CAIR 802 unit, as ofthe laterofJanuary 1,2010, orJanuary 1 ofthe first control period during which such CAIR opt-in permit is issued. (10) Ifthe CAIR designated representative requests, and the department issues a CAIR opt-in permit providing for, allocation to a GAIR 802 opt-in unit ofGAIR 80 allowances under subsection G)(4) and such unit is repowered after its date ofentry into the CAIR 802 (rading program undersubdivision (9), the repowered unit shall be treated as a CAIR 802 opt-in unit replacing the original CAIR 802 opt-in unit, as ofthe date ofstart-up ofthe repowered unit's combustion chamber. Notwithstanding subdivisions (5) and (6), as ofthe date ofstart-up under subdivision (10), the repowered unit shall be deemed to have the same date ofcommencement of operation, date ofcommencement of commercial operation, baseline heat input, and baseline 802 emission rate as the original CAIR 802 opt-in unit, and the

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR·326080005FDA Page 44Indiana Register original CAIR 802 opt-in unit shall no longer be treated as a CAIR 802 opt-in unit ora CAIR 802 unit.

(g) The following shall applyto the content ofeach CAIR opt-in permit: (1) Each opt-in permit shall contain the following:

(A) All elements required for a complete CAIR permit application undersection 7(c) ofthis rule. (B) The certification in subsection 

### (e)(2). (C) The unit's baseline heat input under subsection (f)(5). (D) The unit's baseline S02 emission rate undersubsection (f)(6). (E) A statementwhethertlie unit is to be allocated CAIR S02 allowances undersubsection 0)(3) or0)(4), subjectto the conditions in subsections (f)(10) and (h)(8). (F) A statement that the unit maywithdrawfrom the CAIR 802 trading program only in accordance with subsection (h). (8) A statementthat the unit is subject to, and the owners and operators ofthe unit must comply with, the requirements ofsubsection (i). (2) Each CAIR opt-in permit is deemed to incorporate automaticallythe definitions ofterms undersection 2 of this rule and, upon recordation by the U.S. EPA underthis section and sections 8 and 9 ofthis rule, every allocation, transfer, ordeduction of CAIR S02 allowances to orfrom the compliance account ofthe source that includes a CAIR 802 opt-in unit covered by tne CAIR opt-in permit. (3) The CAIR opt-in permit shall be included, in a format specified bythe department, in the CAIR permitfor the sources where the CAIR 802 opt-in is located and in a Part 70 operating permit or FE80P.

(h) The following requirements must be satisfied in orderto withdraw an opt-in unitfrom the CAIR S02 trading program: (1) Except as provided undersubdivision (8), a CAIR 802 opt-in unit maywithdrawfrom the CAIR SO trading program, but only ifthe department issues a notification to the CAIR designated representative ofthe tAIR S02 opt-in unit ofthe acceptance ofthe withdrawal ofthe CAIR 802 opt-in unit in accordance with subdivision (6). (2) In orderto withdraw a CAIR 802 opt-in unit from the CAIR 802 trading program, the CAIR designated

_ representative ofthe CAIR 802 opt-in unit shall submitto the department a request to withdraw effective as of midnight of December31 of a specified calendaryear, which date must be at leastfour (4) years after December31 ofthe year ofentry into the CAIR 802 trading program under subsection (f)(9). The request must be submitted not laterthan ninety (90) days before the requested effective date ofwithdrawal. (3) Before a CAIR S02 opt-in unit covered by a request undersubdivision (1) maywithdraw from the CAIR

. 802 trading program and the CAIR opt-in permit may be terminated undersubdivision (7), the following conditions must be met: (A) Forthe control period ending on the date on which the withdrawal is to be effective, the source that includes the CAIR S02 opt-in unit must meetthe requirement to hold CAIR 802 allowances undersection 4(c) ofthis rule and cannot have any excess emissions. (B) Afterthe requirement for withdrawal underclause (A) is met, the U.8. EPAwill deductfrom the compliance account ofthe source that includes the CAIR 80 opt-in unit CAIR 80 allowances equal in amountto and allocated forthe same ora priorcontrol perioJas any CAIR 802 allbwances allocated to the CAIR 802 opt-in unit undersubsection 0) for any control period forwhich the Withdrawal is to be effective. If there are no remaining CAIR 802.units atthe source, the U.S. EPAwill close the compliance account, and the owners and operators ofthe c;AIR S02 opt-in unit maysubmit a CAIR S02 allowance transferfor any remaining CAIR 802 allowances to anotherCAIR S02 allowance tracking system in accordance with section 9 ofthis rule. (4) Afterthe requirements forwithdrawal under subdivisions (2) and (3) are met, including deduction ofthe full amount ofCAIR 802 allowances required, the department shall issue a notification to the CAIR designated representative ofthe CAIR S02 opt-in unit ofthe acceptance ofthe withdrawal ofthe CAIR S02 opt-in unit as of midnight on December31 01 the calendaryearfor which the withdrawal was requested. (5) Ifthe requirements forwithdrawal undersubdivisions (2) and (3) are not met, the departmentshall issue a notification to the CAIR designated representative ofthe CAIR 802opt-in unitthat the CAIR 802 opt-in unit's request to withdraw is denied. 8uch CAIR 802 opt-in unit shall continue to be a CAIR 80 opt-in unit. (6) Afterthe department issues a notification under subdivision (4) that the requirements

# torwithdrawal have been met, the departmentshall revise the CAIR permit covering the CAIR 802 opt-in unitto terminate the CAIR opt-in permit for such unit as ofthe effective date specified undersubdiVision (4). The unitshall continue to be a CAIR S02 opt-in unit until the effective date ofthe termination and shall comply with all requirements underthe CAIR :;02 trading program concerning any control periods for which the unit is a CAIR**80~** opt,in unit, even ifsuch requirements arise or must be complied with afterthe withdrawal takes effect. (7) Ifthe department denies the CAIR 802 opt-in unit's request to withdraw, the CAIR designated

Dale: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR·326080005FDA Page 45Indiana Register representative may submit another request to withdraw in accordance with subdivisions (2) and (3). (8) Notwithstanding subdivisions (1) through (7), a CAIR S02 opt-in unit shall not be eligible to withdraw from the CAIR S02 trading program ifthe CAIR designated representative ofthe CAIR S02 opt-in unit requests, and the department issues a CAIR S02 opt-in permit providing for, allocation to the CAIR S02 opt-in unit of CAIR S02 allowances undersubsection 0)(4). (9) Once a CAIR S02 opt-in unitwithdraws from the CAIR S02 trading program and its CAIR opt-in permit is terminated underthis section, the CAIR designated representative may not submit another application for a CAIR opt-in permit undersubsection (e) for such CAIR S02 opt-in unit before the date that is four (4) years afterthe date on which the withdrawal became effective. Such new application for a CAIR opt-in permit shall be treated as an initial application for a CAIR opt-in permit undersubsection (f).

(i) When a CAIR S02 opt-in unit becomes a CAIR SO unit under section 1 ofthis rule, then the CAIR designated representative shall notify in writing the

### depa~ment and the U.S. EPA ofsuch change in the CAIR S02 opt-in unit's regulatory status, within thirty (30) days of such change. Ifthere is a change in the regulatory status, the department and the U.S. EPAwill take the following actions concerning the CAIR S02 op.t-in source: (1) When the CAIR S02 opt-in unit becomes a CAIR S02 unit undersection 1 ofthis rule, the department shall revise the CAIR S02 opt-in unit's CAIR opt-in permit to meetthe requirements ofa CAIR permit undersection 7(d) and (7)(e) ofthis rule, and remove the CAIR opt-in provisions, as of the date on which the CAIR S02 opt-in unit becomes a CAIR S02 unit undersection 1 ofthis rule. (2) The U.S. EPAwill deductfrom the compliance account ofthe source that includes the CAIR S02 opt-in unit that becomes a CAIR S02 unit undersection 1 ofthis rule, CAIR S02 allowances equal In amount to and allocated for the same or a prior control period as follows:

(A) Any CAIR S02 allowances allocated to the CAIR S02 opt-in unit undersubsection 0) for any control period afterthe date on which the CAIR S02 opt-in unit 15ecomes a CAIR S02 unit undersection 1 ofthis rule. (B) Ifthe date on which the CAIR S02 opt-in unit becomes a CAIR S02 unit under section 1 ofthis rule is not December31, the CAIR SO allowances allocated to the CAIR S02 opt-in unit undersubsection 0) for the control period that includes 6,e date on which the CAIR S02 opt-in unit becomes a CAIR S02 unit under section 1 ofthis rule, multiplied by the ratio ofthe numberofdays, in the control period, starting with the

. date on which the CAIR S02 opt-in unit becomes a CAIR S02 unit undersection 1 ofthis rule divided by the total numberofdays in the control period and rounded to the nearest whole allowance as appropriate. (3) The CAIR designated representative shall ensure that the compliance account ofthe source that includes the CAIR S02 opt-in unitthat becomes a CAIR S02 unit undersection 1 ofthis rule contains the CAIR S02 allowances necessary for completion ofthe deduction undersubdivision (2).

0) The department shall allocate CAIR S02 allowances to CAIR S02 opt-in sources as follows: (1) When the CAIR opt-in permit is issued undersubsection (1)(7), me department shall allocate CAIR S02 allowances to the CAIR S02 opt-in unit, and submit to the U.S. EPAthe allocation forthe control period in which a CAIR S02 opt-in Unit enters the CAIR S02 trading program undersubsection (1)(9), in accordance with subdivision (;;) or (4). (2) By not laterthan October31 ofthe control period in which a CAIR S02 opt-in unit enters the CAIR S02 trading program undersubsection (1)(9) and October31 ofeach yearthereafter, the department shall allocate CAIR SO allowances to the CAIR SO opt-in unit, and submit to the U.S. EPA the allocation for the control period thJt includes such submission Jeadline and in which the unit is a CAIR S02 opt-in unit, in accordance with subdivision (3) or (4). (3) For each control period forwhich a CAIR S02 opt-in unit is to be allocated CAIR S02 allowances, the department shall allocate in accordance with the following procedures: (A) The heat input, in million British thermal units (MMBtu), used for calculating the CAIR S02 allowance allocation shall be the lesserofthe following:

(i) The CAIR SO opt-in unit's baseline heat input determined undersubsection (1)(5). (ii) The CAIR

# sCt 2opt-in unit's heat input, as determined in accordance with section 10 ofthis rule, for the immediately priorcontrol period, exceptwhen the allocation is being calculated for the control period in which the CAIR S02 opt-in unit enters the CAIR S02 trading program undersubsection (1)(9). (B) The S02 emission rate, in million British thermal units (MMBtu), used for calculating CAIR S02 allowance allocations shall be the lesserofthe follOWing:

(i) The CAIR S02 opt-in unit's baseline SO;: emissions rate, in pounds per million British thermal units (lb/MMBtu), determined undersubsection (1)(6) and multiplied by seventy percent (70%). (Ii) The most stringent state orfederal S02 emissions limitation applicable to the CAIR S02 opt-in unit at anytime during the control period for whiCh CAIR S02 allowances are to be allocated. (C) The department shall allocate CAIR S02 allowances to the CAIR S02 opt-in unit

### ffi-afl with a tonnage

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR·326080005FDA Page 46Indiana Register equivalent equal to, or less than bythe smallest possible amount,**e~~aliR§** the heat input under clause (A), multiplied bythe S02 emission rate underclause (B), divided by two thousand (2,000) pounds perton, and rounded to the nearest whole allowance as appropriate. (4) Notwithstanding subdivision (3) and Ifthe CAIR designated representative requests, and the department issues a CAIR opt-in permit (based on a demonstration ofthe intentto repower stated undersubsection (e)(5)) providing for, allocation to a CAIR SO opt-in unit of CAIR S02 allowances underthis subdivision, subjectto the conditions in subsections (1)(1

## OJ and (h), the department shall allocate to the CAIR S02 opt-in unit as follows:

(A) Foreach control period in 2010 through 2014 for which the CAIR S02 opt-in unit is to be allocated CAIR SO allowances as follows:

(i)l-he heat input, in million British thermal units (MMBtu), used for calculating CAIR S02 allowance allocations shall be determined as described in subdivision (3)(A). (ii) The S02 emission rate, in pounds per million British thermal units (lb/MMBtu), used for calculating CAIR SO allowance allocations shall be the lesserof:



### (/J>.) the CAIR S02 opt-in unit's baseline S02 emissions rate, in pounds per million British thermal units (lb/MMBtu), determined undersubsection (f)(6); or (BB) the most stringent state orfederal S02 emissions limitation applicable to the CAIR S02 opt-in unit at anytime during the control period in which the CAIR S02 opt-in unit enters the CAIR S02 trading program undersubsection (1)(9). (iii) The department shall allocate CAIR S02 allowances to the CAIR S02 opt-in unit iR-af\with atonnage equivalent equal to, or less than by the smallest possible amount,**e~~aliR§** the heat input under item (i), multiplied bythe S02 emission rate under item (ii), divided bytwo thousand (2,000) pounds perton, and rounded to the nearestwhole allowance as appropriate. (B) Foreach control period in 2015 and thereafterforwhich the CAIR S02 opt-in unit is to be allocated CAIR SO allowances as follows:

(i)l-he heat input, in million British thermal units (MMBtu), used for calculating the CAIR S02 allowance allocations shall be determined as described in subdivision (3)(A). (ii) The S02 emission rate, in pounds per million British thermal units (lb/MMBtu), used for calculating the CAIR S02 allowance allocation shall be the lesserof:

(AA) the CAIR S02 opt-In unit's baseline S02)( emissions rate, in pounds per million British thermal units (lb/MMBtu), determined undersubsection (f)(6) multiplied by ten percent (10%); or (BB) the most stringent state orfederal S02 emissions limitation applicable to the CAIR S02 opt-in unit at anytime during the control period for whicli CAIR S02 allowances are to be allocated. (iii) The department shall allocate CAIR S02 allowances to the CAIR SO opt-in unit in an amount equaling the heat input item (i), multiplied by the S02 emission rate underclause (s)(ii), divided by two thousand (2,000) pounds perton, and rounded to the nearestwhole allowance as appropriate. (5) The U.S. EPAwill record, in the compliance account ofthe source that includes the CAIR S02 opt-in unit, the CAIR SO allowances allocated by the department to the CAIR SO opt-in unit undersubdivision (1). (6) By

## Decem~er 1 ofthe control period in which a CAIR SO opt-in unit enters the CAIR SO trading program undersubsection (1)(9) and December 1 of each yearthereafter, the U.S. EPAwill record, inThe compliance account ofthe source that includes the CAIR S02 opt-in unit, the CAIR S02 allowances allocated bythe departmentto the CAIR S02 opt-in unit undersUbdivision (2).

'These documents are incorporated by reference. Copies may be obtained from the Government Printing Office, 732 North Capitol Street NW, Washington, D.C. 20401 or are available for review and copying atthe Indiana Department of Environmental Management, Office ofAir Quality, Indiana Government Center-North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204. (AirPollution ControlBoard; 326 lAC 24-2-11: filedJan 26, 2007, 10:25a.m.: 20070221-IR-326050117FRA; errata filedJan 

### 29, 2007, 2:43p.m.: 20070221-IR-326050117 ACAI

SECTION 10. 326 lAC 24-3-1 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-3-1 Applicability Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-15; IC 13-17

Sec. 1. (a) This rule establishes a NO ozone season emissions budget and NO trading program for x x

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR-326080005FDA Page 47Indiana Register
fossil-fuel-fired generating units and large affected units as described in this rule. The following units shall be CAIR NO, ozone season units, and any source that includes one (1) or more such units shall be a CAIR NO

ozone season source, and shall be subjectto the requirements ofthis rule, except as provided in sUbsection'(b): (1) Any stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine serving at any time, since the laterof November 15, 1990 orthe start-up ofthe unit's combustion chamber, a generatorwith nameplate capacity of more than twenty-five (25) me9awatt electrical producing electricityfor sale. (2) Any large affected unit as defined in section 2 ofthis rule. (3) Ifa stationary boilerorstationary combustion turbine that, undersubdivision (1), is not a CAIR NO ozone
season unit begins to combust fossil fuel orto serve a generatorwith nameplate capacity of more thaA twenty-five (25) megawatt electrical producing electricityfor sale, the unit shall become a CAIR NO ozone
season unit as provided in subdivision (1) on the first date on which it both combusts fossil fuel and"serves such generator.

(b) Units that meet the requirements set forth in subdivision (1), (2), or (3) shall not be CAIR NO ozone
season units under subsection (a)(1) or (a)(3) as follows: ' (1) Any unitthat is a CAIR NO ozone season unit undersubsection 

## fa1 (a)(1) or (a)(3):

(A) qualifying as a cogenera1ion unit during the twelve (12) month period starting on the date the unitfirst produces electricity and continuing to qualifyas a cogeneration unit; and (B) not serving at anytime, since the laterof November 15, 1990, orthe start-up ofthe unit's combustion chamber, a generatorwith nameplate capacity ofmore than twenty-five (25) megawatt electrical supplying in any calendaryear more than one-third 

### (1/3) ofthe unit's potential electric output capacity ortwo hundred nineteen thousand (219,000) megawatt hours, whichever is greater, to any utility powerdistribution system for sale. Ifa unit qualifies as a cogeneration unit during the twelve (12) month period starting on the date the unit first produces electricity and meets the requirements ofthis subdivision for at least one (1) calendaryear, but subsequently no longer meets all such requirements, the unit shall become a CAIR NO ozone season unit starting on the earlierofJanuary 1 afterthe first calendar year during which the unit nofonger qualifies as a cogeneration unit orJanuary 1 after the first calendaryear during which the unit no longer meets the requirements ofclause (B). (2) Any unit that is a CAIR NO, ozone season unit undersubsection

## fa1 (a)(1) or (a)(3) commencing operation before January 1, 1985:

(A) qualifying as a solid waste incineration unit; and (B) with an average annual fuel consumption of nonfossil fuel for 1985-1987 exceeding eighty percent (80%), on a British thermal units basis, and an average annual fuel consumption ofnonfossil fuel for any three (3) consecutive calendar years after 1990 exceeding eighty percent (80%), on a British thermal units basis. (3) Any unit that is a CAIR NO ozone season unit undersubsection

## fa1 (a)(1) or (a)(3) commencing operation 

# , on orafterJanuary 1, 1985:

(A) qualifying as a solid waste**incin~ration** unit; and (B) with an average annual fuel consumption of nonfossil fuel for the first three (3) calendaryears of operation exceeding eighty percent (80%), on a British thermal units basis, and an average annual fuel consumption ofnonfossil fuel for anythree (3) consecutive calendaryears after 1990 exceeding eighty percent (80%), on a British thermal units basis. (4) Ifthe unit qualifies as a solid waste incineration unit and meets the requirements of subdivision (2) or (3) for at leastthree (3) consecutive calendar years, but subsequently no longer meets all such requirements, the unit shall become a CAIR NO ozone season unit starting on the earlierofJanuary 1 afterthe first caiendar year during which the unit firstno longer qualifies as a solid waste incineration unit orJanuary 1 afterthe first three (3) consecutive calendaryears after 1990 forwhich the unit has an average annual fuel consumption of fossil fuel oftwenty percent (20%) or more. (AirPollution ControlBoard; 

### 326 lAC

### 24-3-1; filedJan 

### 26, 2007, 10:25a.m.: 20070221-IR-326050117FRA)

SECTION 11. 326 lAC 24-3-2 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-3-2 Definitions Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-11-2; IC 13-15; IC 13-17

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 48Indiana Register

Sec. 

### 2. For purposes ofthis ruie, the definition given for a term in this rule shall control in any conflict between 326 lAC 1-2 and this rule. In addition to the definitions provided in IC 13-11-2 and 326 lAC 1-2, the following definitions applythroughout this rule, unless expressly stated otherwise or unless the context clearly implies otherwise: 

### (1) "Account**numbe~'** means the identification numbergiven bythe U.S. EPA to each CAIR NO ozone
season allowance tracking system account. x (2) "Acid rain emissions limitation" means a limitation on emissions of sulfur dioxide or nitrogen oxides under the acid rain program. (3) "Acid rain program" means a multistate sulfur dioxide and nitrogen oxides air pollution control and emission reduction program established by the U.S. EPA underTitle IV ofthe Clean Air Act and 40 CFR Parts 72 through 

### 78'. (4) "Allocate" or "allocation" means, with regard to CAIR NO ozone season allowances, the determination by

a permitting authority orthe U.S. EPA ofthe amount ofsuchxCAIR NO ozone season allowances to be initially credited to a CAIR NO ozone season unit, a new unit set-aside, an enXergy efficiency or renewable energy set-aside, or other entify. (5) "Allowance transfer deadline" means, for a control period, midnight of November 30 (ifit is a business day),

or midnight ofthe first business daythereafter (if November 30 is not a business day), immediately following the control period and is the deadline bywhich a CAIR NO ozone season allowance transfer must be submitted for recordation in a CAIR 

### NO

## xsource's compliarfce account in orderto be used to meet the source's CAIR NO ozone season emissions limitation for such control period in accordance with sections 9(i) and

# 9m

ofthis

### rUI~. (6) "Alternate CAIR designated representative" means, for a CAIR NO ozone season source and each CAIR NO ozone season unit at the source, the natural per§'on who is authoAzed bythe owners and operators ofthe soutce and all such units atthe source in accordance with sections 

### 6 and 12 ofthis rule, to act on behalfofthe CAIR designated representative in matters pertaining to the CAIR NO ozone season trading program. Ifthe CAIR NO ozone season source is also a CAIR NO source, then thisXnatural person shall be the same person
as the

### alt~rnate CAIR designated representative unaerthe CAIR NO annual trading program. Ifthe CAIR NO

ozone season source is also a CAIR S02 source, then this natural pe'rson shall be the same person as the x alternate CAIR designated representative underthe CAIR S02trading program. Ifthe CAIR NO ozone
season source is also subject to the acid rain program, then 

### tn,S natural person shall be the sarrfe person as the alternate designated representative underthe acid rain program. Ifthe CAlR NO ozone season source is also subject to the mercury budget trading program, then this natural person shall b€the same person as the alternate mercury designated representative underthe mercury budget trading program. (7) "Automated data acquisition and handling system" or "DAHS" means that component ofthe continuous emission monitoring system, or other emissions monitoring system approved for use undersection 

### 11 ofthis rule, designed to interpret and convert individual output signals from pollutant concentration monitors, fiow monitors, diluent gas monitors, and other component parts ofthe monitoring system to produce a continuous record ofthe measured parameters in the measurement units required by section 11 ofthis rule. (8) "Biomass" means any ofthe following:

(A) Organic material grown forthe purpose of being converted to energy. (B) Organic byproduct of agriculture that can be converted into energy. 

### (e) Material that:

(i) can be converted into energy and is nonmerchantable for other purposes; (ii) is segregated from other nonmerchantable material; and 

### (Iii) is:

(AA) a forest-related organic residue, including mill residues, precommercial thinnings, slash, brush, or byproduct from conversion oftrees to merchantable material; or (BB) a wood material, including pallets, crates, dunnage, manufacturing and construction materials (otherthan pressure-treated, chemically-treated, or painted wood products), and landscape or right-of-way trimmings. 

## tat (9) "Boiler" means an enclosed fossil- or other-fuel-fired combustion device used to produce heat and to transfer heatto recirculating water, steam, or other medium. 

## t97 (10) "Bottoming-cycle cogeneration unit" means a cogeneration unit in which the energy input to the unit is first used to produce useful thermal energy and at least some ofthe reject heat from the useful thermal energy application or process is then used for electricity production. 

## fW1 (11) "CAIR authorized account representative" means, with regard to a general account, a responsible natural person who is authorized, in accordance with sections 6, 9, and 12 ofthis rule, to transfer and otherwise dispose of CAIR NO ozone season allowances held in the general account and, with regard to a compliance account, the CAIRXdesignated representative ofthe source. 

## \441 (12) "CAIR designated representative" means, for a CAIR NO ozone season source and each CAIR NO x x

Date: Jun 26.2009 9:29:21AM EDT DIN: 200B0123·IR·3260B0005FDA Page 49Indiana Register

ozone season unit atthe source, the natural person who is authorized bythe owners and operators ofthe

source and all such units atthe source, in accordance with sections 6 and 12 ofthis rule, to represent and legally bind each ownerand operator in matters pertaining to the CAIR NO ozone season trading program. If the CAIR NO ozone season source is also a CAIR NO source, then this ri'atural person shall be the same person as the"CAIR designated representative underth'il CAIR NO annual trading program. Ifthe CAIR NO

ozone season source is also a CAIR S02 source, then this natural person shall be the same person as the x CAIR designated represe'ntative under Hie CAIR S02 trading program. Ifthe CAIR NO ozone season source is also subjectto the acid rain program, then this natural person shall be the same pergon as the designated representative underthe acid rain program. Ifthe CAIR NO ozone season source is also subject to the mercury budgettrading program, then this natural person sRall be the same person as the mercury designated representative underthe mercury budgettrading program. 

## f4-21 (13) "CAIR NO annual trading program" means a multistate nitrogen oxides air pollution control and emission reduction program approved and administered bythe U.S. EPA in accordance with 326 lAC 24-1; 40 CFR 96, Subparts AA through II' and 40 CFR 51.123'; or established by the U.S. EPA in accordance with 40 CFR 97, Subparts AA through II' and 40 CFR 51.123(p)' and 40 CFR 52.35', as a means of mitigating interstate transport offine particulates and nitrogen oxides. 

## t461 (14) "CAIR NO ozone season allowance" means a limited authorization issued by a permitting authority

orthe U.S. EPA under provisions ofa state implementation plan that are approved under40 CFR 51.123(aa)(1) or40 CFR 51.123(aa)(2) and 40 CFR 51.123(bb)(1), 40 CFR 51.123(bb)(2), 40 CFR 51.123(dd), 40 CFR 51.123(ee)', or under40 CFR 

### 91', to emit one (1) ton of nitrogen oxides during a control period ofthe specified calendaryearfor which the authorization is allocated or of any calendaryearthereafter underthe CAIR NO ozone season trading program ora limited authorization issued by a permitting authority for a control period aUring 2003 through 2009 underthe NO budget trading program in accordance with 40 CFR 51.121 (p)' or326 lAC 10-4 to emit one (1) ton of nitrogen oxides during a control period, provided that the provision in 40 CFR 51.121(b)(2)(ii)(E)' shall not be used in applying this definition and the limited authorization shall not have been used to meetthe allowance-holding requirement underthe NO budget trading program. An authorization to emit nitrogen oxides that is not issued underprovisions of aX state implementation plan approved under40 CFR 51.121 (p)' or40 CFR 51.123(aa)(1) or40 CFR 51.123(aa)(2), and 40 CFR 51.123(bb)(1), 40 CFR 51.123(bb)(2), 40 CFR 51.123(dd), or40 CFR 51. 123(ee)', or under40 CFR 97' shall not be a CAIR NO ozone season allowance. 

## f441 (15) "CAIR NO ozone seas6n allowance deduction" or "deduct CAIR NO ozone season allowances"

means the permane"ntwithdrawal of CAIR NO ozone season allowances by tfie U.S. EPA from a compliance account, for example, in orderto accountfor a'specified numberoftons oftotal nitrogen oxides emissions from all CAIR NO ozone season units at a CAIR NO ozone season source for a control period, determined in accordance with iection 11 ofthis rule, or to account'forexcess emissions. 

## f%1 (16) "CAIR NO ozone season allowances held" or "hold CAIR NO ozone season allowances" means the CAIR NO ozone se"ason allowances recorded bythe U.S. EPA, orsubfuitted to the U.S. EPAfor recordation, in accord§nce with sections 9, 10, and 12 ofthis rule, in a CAIR NO ozone season allowance tracking system account.**"'~~** x 

## f%1 (17) "CAIR NO ozone season allowance tracking system" means the system by which the U.S. EPA records allocations,xdeductions, and transfers ofCAIR NO ozone season allowances underthe CAIR NO

ozone season trading program. Such allowances will be alfocated, held, deducted, ortransferred only as x whole allowances. 

## f'l-7t (18) "CAIR NO ozone season allowance tracking system account" means an account in the CAIR NO

ozone season allow"ance tracking system established bythe U.S. EPAfor purposes of recording the allocatfon, holding, transferring, ordeducting of CAIR NO ozone season allowances. 

### (4S1 (19) "CAIR NO· ozone season emissions

### ~mitation" means, for a CAIR NO ozone season source, the tonnage equivalent,Xin NO emissions in a control period, ofthe CAIR NO ozon'e season allowances available for deduction forthe sourc'il undersection 9(i) and 90)(1) ofthis rule forth'e control period. (4B7 (20) "CAIR NO ozone season source" means a source that includes one (1) or more CAIR NO ozone 

### season units. x x (21) "CAIR NO ozone season trading program" means a multistate nitrogen oxides air pollution control and emission reducton program approved and administered by the U.S. EPA in accordance with this rule; 40 CFR 96, Subparts AAAAthrough IIII' and 40 CFR 51.123'; orestablished bythe U.S. EPA in accordance with 40 CFR 97, Subparts AAAAthrough IIII' and 40 CFR 51.123(ee)' and 40 CFR 52.35', as a means of mitigating interstate transport of ozone and nitrogen oxides. (22) "CAIR NO ozone season unit" means a unitthat is subject to the CAIR NO ozone season trading program undersectfon 1 ofthis rule and, and exceptforthe purposes of sections 3

### a~d 8 ofthis rule, a CAIR NO ozone season opt-in unit under section 12 ofthis rule.

,_ (23) "CAIR NO source" means a source that is subject to the CAIR NO annual trading program. (24) "CAIR pednit" means the legally binding and federally enforceable (\,ritten document, or portion of

Date: Jun 26.2009 9:29:21AM EDT DIN: 20080123·IR·326080005FDA Page 50Indiana Register
such document, issued bythe department under section 7ofthis rule, including any permit revisions, specifying the CAIR NO ozone season trading program requirements applicable to a CAIR NO ozone
season source, to each CAIR NO ozone season unit at the source, and to the owners and operators and the CAIR designated representative

# 0'1 the source and each such unit. 

## fi!41 (25) "CAIR S02 source" means a source that is subject to the CAIR S02 trading program. (26) "CAIR S02 trading program" means a muitistate sulfurdioxide air pollution control and emission reduction program approved and administered bythe U.S. EPA in accordance with 326 iAC 24-2; 40 CFR 96, Subparts AAAthrough 111* and 40 CFR 51.124'; orestablished in accordance with 40 CFR 97, Subparts AAA through III and 40 CFR 51.124(r)· and 40 CFR 52.36", as a means of mitigating interstate transport offine particulates and sulfurdioxide. 

## \261 (27) "Coal" means any solid fuel classified as anthracite, bituminous, subbituminous, or lignite. 

## f27J (28) "Coal-derived fuel" means anyfuel, whether in a solid, liquid, orgaseous state, produced bythe mechanical, thermal, or chemical processing of coal. 

## fil<l1 (29) "Coal-fired" means: (A) exceptfor purposes ofsection 8 ofthis rule, combusting any amount ofcoal orcoal-derived fuel, alone

or in combination with any amount of any otherfuel, during any year; or (B) for purposes ofsection 8 ofthis rule, combusting any amount ofcoal or coal-derived fuel, alone or in combination with any amount of any otherfuel, during a specified year. (30) "Cogeneration unit" means a stationary, fossil-fuel-fired boilerorstationary, fossil-fuel-fired combustion turbine:

(A) having equipment used to produce electricity and useful thermal energyfor industrial, commercial, heating, orcooling purposes through the sequential use of energy; 

### 6f*! (B) producing electricity during the twelve (12) month period starting on the date the unitfirst produces electricity and during any calendaryear afterthe calendaryear in which the unit first produces electricity:

(i) for a topping-cycle cogeneration unit:

(AA) useful thermal energy not less than five percent (5%) oftotal energy output; and (BB) useful powerthat, when added to one-half (y,) of useful thermal energy produced, is not less than forty-two and one-half percent (42.5%) oftotal energy input, if useful thermal energy produced is fifteen percent (15%) or more oftotal energyoutput, or not less than forty-five percent (45%) oftotal energy input, ifuseful thermal energy produced is less than fifteen percent (15%) oftotal energy output; and 

### (i1) for a bottoming-cycle cogeneration unit, useful power not less than forty-five percent (45%) oftotal energy input; and 

### (e) provided that the total energy input under clause (B)(i)(BB) and (8)(ii) shall equal the unit's total energy inputfrom all fuel except biomass ifthe unit is a boiler. 

## taG1 (31) "Combustion turbine" means: (A) an enclosed device comprising a compressor, a combustor, and a turbine and in which the flue gas resuiting from the combustion offuel in the combustor passes through the turbine, rotating the turbine; and (B) ifthe enclosed device underclause (A) is combined cycle, any associated duct burner, heat recovery steam generatorand steam turbine. 

## t&1-l (32) "Commence commercial operation" means, with regard to a unit serving a generator, the following: (A) To have begun to produce steam, gas, orother heated medium used to generate electricity for sale or use, including test generation, except as provided in sections 3 and 12(f)(10) ofthis rule, subjectto the following:

(i) Fora unitthat is a CAIR NO ozone season unit undersection 1 ofthis rule on the laterof November 15, 1990, orthe date the unit comrt\ences commercial operation as defined in this clause and that subsequently undergoes a physical change (otherthan replacement ofthe unit by a unit atthe same source) such date shall remain the date of commencement of commercial operation ofthe unit, which shall continue to be treated as the same unit. (ii) Fora unit that is a CAIR NO ozone season unit undersection 1 ofthis rule on the later of November 15,1990, orthe date the unit c6mmences commercial operation as defined in this clause and that is subsequently replaced by a unit atthe same source (forexample, repowered), such date shall remain the replaced unit's date ofcommencement of commercial operation, and the replacement unitshall be treated

as a separate unitwith a separate date for commencement of commercial operation as defined in this clause orclause (B) as appropriate. (B) Notwithstanding clause (A) and except as provided in section 3 ofthis rule, for a unitthat is not a CAIR NO ozone season unit undersection 1 ofthis rule on the later of November 15, 1990, or the date the unit corilmences commercial operation as defined in clause (A), the unit's date for commencement of commercial operation shall be the date on which the unit becomes a CAIR NO ozone season unit under section 1 ofthis rule, subjectto the following: x

(i) Fora unitwith a date for commencement ofcommercial operation as defined in this clause and that subsequently undergoes a physical change, otherthan replacement ofthe unit by a unit atthe same

Date: Jun 26.2009 9:29:21AM EDT DIN: 20080123-IR·32608000SFDA Page 51

### Indiana Register

source, such date shall remain the date ofcemmencement ofcemmercial operation ofthe unit, which shall centinueto be treated as the same unit. 

### (ii) Fora unitwith a date for commencement ofcemmercial operation as defined in this clause and that is subsequentiy replaced bya unit atthe same source (forexample, repowered), such date shall remain the replaced unit's date ofcommencement ofcommercial operation, and the replacement unitshall be treated

as a separate unitwith a separate date for commencement ofcommercial operation as defined in this clause orclause (A), as appropriate. (C) Notwithstanding clauses (A) and (B), for a unit notserving a generator producing electricity for sale, the unit's date ofcommencement ofoperation shall also be the unit's date ofcommencement ofcommercial operation. 

## f6i!1 (33) "Commence operation" meansthe following: (A) To have begun any mechanical, chemical, orelectronic process, including, with regard to a unit, start-up ofa unit's combustion chamber, except as provided in section 12(f)(1 0) ofthis rule. (B) Fora unitthat undergoes a physical change (otherthan replacement ofthe unit bya unitat the same source) afterthe datethe unit commences operation as defined in clause (A), such date shall remain the unit's date ofcommencement ofoperation ofthe unit, which shall continue to be treated as the same unit. (C) Fora unit that is replaced bya unit atthe same source (forexample, repowered) afterthe date the unit

commences operation as defined in clause (A), such date shall remain the replaced unit's date of commencement, and the replacement unitshall be treated as a separate unit with a separate date for cemmencement ofoperation as defined in this clause orclause (A) or (B), as appropriate, except as provided in section 12(f)(10) ofthis rule. (0) Notwithstanding clauses (A) through 

### (e), and solelyfor purposes of section 11 ofthis rule, for a unitthat is nota large affected unit undersubdivision (51)(A) or (51)(6) on the laterof November 15, 1990, orthe datethe unit commences operation as defined in clause (A) and that subsequently becomes a large affected unit undersubdivision (51)(A) or (51)(6), the unit's date for commencement ofoperation shall be the date on which the unit becomes a large affected unit under subdivision (51)(A) or (51)(6). 

### (E) Fora unitwith a date of commencement ofoperation as defined in clause 

### (0) and that subsequently undergoes a physical change (otherthan replacement ofthe unit by a unit atthe same source), such date shall remain the date ofcommencement ofoperation ofthe unit, which shall continue to be treated as the same unit. (F) For a unitwith a date for commencement ofoperation as defined in clause 

### (0) and that is subsequently replaced by a unit atthe same source (forexample, repowered), such date shall remain the replaced unit's date ofcommencement ofoperation, and the replacement ofoperation as defined in this clause orclauses (A) through 

### (E), as appropriate. (34) "Common stack" means asingle flue through which emissions from two (2) or more units are exhausted. (35) "Compliance account" means aCAIR NO ozone season allowance tracking system account, established bythe U.S. EPAfor a CAIR NO ozone'season source undersection 9 or 12 ofthis rule, in which any CAIR NO ozone season allowance allo"cations forthe CAIR NO ozone season units at the source are initially recoreted and in which are held any CAIR NO ozone season'allowances available for use for a centrol period in orderto meetthe source's CAIR NO ozone'season emissions limitation in accordance with section 9(i) and 9m ofthis rule. ' (36) "Continuous emission monitoring system" or "CEMS" meansthe equipment required undersection 11 ofthis rule to sample, analyze, measure, and provide, by means ofreadings recorded at leastonce every fifteen (15) minutes, using an automated data acquisition and handling system (DAHS), a permanent record of nitrogen oxides emissions, stack gasvolumetricflow rate, stack gas moisture content, and oxygen or carbon dioxide concentration, as applicable, in a mannerconsistent with 40 CFR 75'. The following systems are the principal types ofcentinuous emission monitoring systems required undersection 11 ofthis rule:

(A) A flow monitoring system, consisting of astackflow rate monitorand an automated data acquisition and handling system and providing a permanent, continuous record of stack gas volumetricflow rate, in standard cubicfeet per hour (scth). (B) A nitrogen oxides concentration monitoring system, consisting ofa NO ozone season pollutant concentration monitorand an automated data acquisition and handling sys'em and providing a permanent, continuous record of NO ozone season emissions, in parts per million (ppm). (C) A nitrogen oxides

### em~ssion rate (or NO -diluent) monitoring system, consisting of a NO ozone season pollutant concentration monitor, a diluent

### g~s (C02 

### or02) monitor, and an automated data §cquisition and handling system and providing a permanent, continuous recQl:d of NO ozone season concentration, in parts per million (ppm), diluent gas concentration, in percent CO2or

# °

2: and NO ozone season emission rate, in pounds per million British thermal units (lb/MMBtu). ' (D) A moisture monitoring system, as defined in 40 CFR 75.11 (b)(2)' and providing a permanent,

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR·32608000SFDA Page 

### 52Indiana Register
continuous record ofthe stackgas moisture content, in percent H 0. (E) A carbon dioxide monitoring system, consisting ofa COz pOllu1ant concentration monitor, oran oxygen monitorplus suitable mathematical equations from which the COz concentration is derived, and an automated data acquisition and handling system and providing a permanent, continuous record ofCOz emissions, in percent COz' (F) An oxygen monitoring system, consisting ofan 0z concentration monitorand an automated data acquisition and handling system and providing a permanent, continuous record of

# °,in percent Oz. (37) "Control period" means the period beginning May 1 ofa calendaryear, excep1 as provided in section 4(c)(2) ofthis rule, and ending on September30 ofthe same year, inclusive. (38) "Electricity for sale undera firm contract to the electric grid" means electricity for sale where the capacity involved is intended to be available at all times during the period covered bythe guaranteed commitment to deliver, even underadverse conditions. 

## t3+1 (39) "Emissions" means air pollutants exhausted from a unit orsource into the atmosphere, as measured, recorded, and reported to the U.S. EPA by the CAIR designated representative and as determined by the U.S. EPA in accordance with section 11 ofthis rule. 

## t3S1 (40) "Energy efficiencyor renewable energy projects" means any ofthe following implemented in Indiana: (A) End-use energy efficiency projects, including demand-side management programs. (8) Highly efficient electricity orsteam generation forthe predominant use of a single end user, such as combined cycle, combined heat and power, microturbines, and fuel cell systems. In orderto be considered

as highlyefficient electricity generation underthis clause, combined cycle, combined heat and power, microturbines, and fuel cell generating systems must meet orexceed the following thresholds:

(i) Forcombined heat and power projects generating both electricityand thermal energyfor space, water,

or industrial process heat, rate(!energy efficiency of sixty percent (60%). (ii) For microturbine projects rated at or belowfive hundred (500) kilowatts generating capacity, rated energy efficiency offorty percent (40%). (iii) Forcombined cycle projects rated at greaterthan five hundred (500) kilowatts, rated energy efficiency offifly percent (50%). (iv) Forfuel cell systems, rated energy efficiencyofforty percent (40%), whether or not the fuel cell system is part ofa combined heat and powerenergy system. (C) Zero-emission renewable energy projects, including wind, photovoltaic, solar, and hydropower projects. Eligible hydropowerprojects are restricted to systems employing a head often (10) feet or less orsystems employing a head greaterthan ten (10) feet that make use ofa dam that existed before September 16, 2001. (0) Energy efficiency projects generating electricity through the capture of methane gas from municipal solid waste landfills, watertreatment plants, sewage treatment plants, oranaerobic digestion systems operating

on animal or plant wastes. (E) The installation of highly efficient electricity generation equipmentforthe sale ofpowerwhere such equipment replaces ordisplaces retired electrical generating units. In orderto be considered as highly efficient underthis clause, generation equipment must meet or exceed the following energy efficiency thresholds:

(i) Forcoal-fired electrical generation units, rated energy efficiencyofforty-two percent (42%). (ii) For natural gas-fired electrical generating units, rated energy efficiency offifly percent (50%). (F) Improvements to existing fossil fuel-fired electrical generation unitsthat increase the efficiency ofthe unit and decrease the heat rate used to generate electricity, including gas reburning projects that reduce NO



### . 

## . 

# . emISSions. (G) The installation of integrated gasification combined cycle equipment producing electricityfor sale. (H) Renewable energy projects that displace some portion ofthe combustion of coal, natural gas, oroil through the use of solarenergy or methane from landfills, watertreatment plants, sewage treatment plants,

oranaerobic digestion systems on animal or plant wastes and reduce NO emissions. Energy efficiency or renewable energy projects do not include nuclear

### powe~ projects. This definition is solely forthe purposes of implementing this rule and does not apply in other contexts. 

### (391 (41) "Excess emissions" means anyton of nitrogen oxides emitted by the CAIR NO ozone season units at a CAIR NO ozone season source during a control period that exceeds the CAIR NO 'ozone season emissions

### Iim~ation forthe source. • 

## \4G1 (42) "FESOP" means a federally enforceable state operating permit issued under 326 lAC 2-8. 

## f441 (43) "Fossil fuel" means natural gas, petroleum, coal, oranyform of solid, liquid, orgaseous fuel derived from such material. (44) "Fossil-fuel-fired" means, with regard to a unit, the following: (A) Except as provided in clause (8), combusting any amount offossil fuel in any calendar year. (8) Solelyforthe purposes of applying the term "large affected unit", the combustion offossil fuel, alone or in combination with any otherfuel, under any ofthe following scenarios:

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR·32608000SFDA Page 53Indiana Register (i) Fossil fuel actually combusted comprises more than fifty percent (50%) ofthe annual heat input

on a British thermal unit (Btu) basis during any yearstarting in 1995. Ifa unit had no heat input starting in 1995, during the lastyear ofoperation ofthe unit priorto 1995. 

### (ii) Fossil fuel is projected to comprise more than fifty percent (50%) ofthe annual heat input on a Btu basis during anyyear, provided that the unitshall be fossil·fuel·fired as ofthe date, during the year, thatthe unit begins combusting fossil fuel. 

## \431 (45) "Fuel oil" means any petroleum-based fuel, including diesel fuel or petroleum derivatives such as oil tar, and any recycled or blended petroleum products or petroleum byproducts used as a fuel whether in a liquid, solid, orgaseous state, 

### (441 (46) "General account" means a CAIR NO ozone season allowance tracking system account, established undersection 9 ofthis rule, that is

### Rota compliance account. 

### (4&t (47) "Generator" means adevice that produces electricity, 

### (4&t (48) "Gross electrical output" means, with regard to a cogeneration unit. electricity made available for use, including any such electricity used in the power production process, This process may include, but is not limited

### to, anyon-site processing ortreatment offuel combusted atthe unit and anyon-site emission controls, 

## t4+1 (49) "Heat input" means, with regard to a specified period oftime, the product, in million British thermal units per unit oftime (MMBtu/time) ofthe gross calorificvalue ofthe fuel, in British thermal units per pound (Btullb), divided by one million (1,000,000) British thermal units per million British thermal units (Btu/MMBtu) and multiplied bythe fuel feed rate into a combustion device, in pounds offuel per unit oftime (Ib offuel/time),

as measured, recorded, and reported to the U,S, EPA bythe CAIR designated representative and determined bythe U,S, EPA in accordance with section 11 ofthis rule and excluding the heat derived from preheated combustion air, recirculated flue gases, orexhaustfrom othersources, 

## f48t (50) "Heat input rate" means the amount of heat input, ,n'million British thermal units (MMBtu), divided by unit operating time, in hours, or, with regard to a specific fuel, the amount of heat input attributed to the fuel, in million British thermal units (MMBtu), divided bythe unit operating time, in hours, during which the unit

combusts the fuel. 

## \49t (51) "Large affected unit" means the following: (A) For units otherthan cogeneration units commencing operation, the following:

(i) Before January 1, 1997, a unit that has a maximum design heat input greaterthan two hundred fifty million (250;000,000) Btus per hourand that did not serve during 1995 or 1996 a generatorproducing electricityfor sale undera firm contract to the electric grid, (ii) On orafterJanuary 1, 1997, and before January 1, 1999, a unitthat has a maximum design heat input greaterthan two hundred fifty million (250,000,000) Btus per hourand that did notserve during 1997 or 1998 a generatorproducing electricity forsale undera firm contract to the electric grid, (iii) On orafterJanuary 1, 1999, a unit with a maximum design heat input greaterthan two hundred fifty million (250,000,000) Btus per hourthat:



### (M) at no time serves a generator producing electricityfor sale; or (BB) at any time serves a generator producing electricityfor sale, ifany such generator has a nameplate capacity oftwenty-five (25) megawatt electrical or less and has the potential to use no more than fifty percent (50%) ofthe potential electrical output capacity ofthe unit. (B) Forcogeneration units commencing operation, the following:

(i) Before January 1,1997, a unitwith a maximum design heat input greaterthan two hundred fifty million (250,000,000) Btus per hourand qualifying as an unaffected unit underthe acid rain program for 1995 and 1996, (ii) In 1997 or 1998, a unitwith a maximum design heat input greaterthan two hundred fifty million (250,000,000) Btus per hourand qualifying as an unaffecl"'t! unit underthe acid rain program for 1997 and 1998, (iii) On orafterJanuary 1,1999, a unit with a maximum design heat input greaterthan two hundred fifty million (250,000,000) Btus per hourand qualifying as an unaffected unit underthe acid rain program for each year, 

### (e) For units otherthan cogeneration units that are not alreadysubject to this rule undersection 1(a)(1) or 1(a)(3) ofthis rUle commencing operation:

(i) before January 1, 1997, a unit serving a generatorduring 1995or 1996 that had a nameplate capacity greaterthan twenty-five (25) megawatts and produced electricityfor sale undera firm contractto the electric grid; 

### (ii) on or afterJanuary 1, 1997, and before January 1, 1999, a unitserving a generatorduring 1997

or 1998 that had a nameplate capacity greaterthan twenty-five (25) megawatts and produced electricityfor sale underafirm contract to the electric grid; or (iii) on orafterJanuary 1, 1999, a unitserving a generator at any time that has a nameplate capacity greaterthan twenty-five (25) megawatts and produced electricityfor sale undera firm contract to the electric grid.

Date; Jun 26,2009 9;29;21AM EDT DIN; 20080123·IR·326080005FDA Page 54

### Indiana Register (D) Forcogeneration units that are not already subjectto this rule under section 1(a)(1) or 1(a)(3) of this rule commencing operation:



### (i) before January 1, 1997, a unitserving a generatorduring 1995 or 1996 that had a nameplate capacity greaterthan twenty-five (25) megawatts and failing to qualify as an unaffected unitfor 1995 or 1996 underthe acid rain program; (ii) in 1997 or 1998, a unit serving ageneratorduring 1997 or 1998 with a nameplate capacity greaterthan twenty-five (25) megawatts and failing to qualifyas an unaffected unitfor 1997 or 1998 underthe acid rain program; or 

### (iii) on or afterJanuary 1, 1999, a unit serving at any time a generatorwith a nameplate capacity greaterthan twenty-five (25) megawatts and failing to qualify as an unaffected unit underthe acid rain program for any year. The term does not include a unit subjectto 326 lAC 10-3. (52) "Life-of-the-unit, firm powercontractual arrangement" means a unit participation powersales agreement underwhich a utilityor industrial customer reserves, or is entitled to receive, a specified amount or percentage ofnameplate capacity and associated energy generated by any specified unitand pays its proportional amount of such unit's total costs, pursuantto a contract:

(A) forthe life ofthe unit; (B) for a cumulative term of no less than thirty (30) years, inciuding contracts that permit an election for early termination; or (C) for a period no less than twenty-five (25) years orseventy percent (70%) ofthe economic useful life of the unitdetenmined as ofthe time the unit is built, with option rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end ofthe period. 

## te41 (53) "Maximum design heat input" means the maximum amount offuel per hour, in British thermal units per hour (Btu/hr), that a unit is capable of combusting on a steady state basis as ofthe initial installation ofthe unitas specified bythe manufacturerofthe unit. 

## t521 (54) "Mercury budget trading program" means a multistate mercury air pollution control and emission reduction program approved and administered bythe U.S. EPA in accordance with 40 CFR 60, Subpart HHHH* and 40 CFR 60.24(h)(6)*, orestablished by the U.S. EPA underthe Clean AirAct, Section 111, as a
means of reducing national mercury emissions. 

## te61 (55) "Monitoring system" means any monitoring system that meets the requirements of section 11 ofthis rule, including a continuous emissions monitoring system, an alternative monitoring system, oran excepted monitoring system under40 CFR 75*. 

## t641 (56) "Most stringent state orfederal NO**e~eRe** 

### seaseR emissions limitation" means, with regard to a unit, the lowest NO emissions limitation. in terms"of pounds per million British thermal units (lb/MMBtu), that is applicable to

### t~e unit understate orfederal law, regardless ofthe averaging period to which the emissions limitation applies. 

# teet (57) "Nameplate capacity" means, starting from the initial installation ofa generator, the maximum electrical generating output, in megawatt eiectrical (MWe), thatthe generator is capable ofproducing on a steady state basis and during continuous operation (when not restricted by seasonal orotherderatings) as of such installation as specified bythe manufacturerofthe generatoror, starting from the completion ofany subsequent physical change in the generator resulting in an increase in the maximum electrical generating output, in megawatt electrical (MWe), that the generator is capable of producing on a steady state basis and during continuous operation (when not restricted by seasonal orotherderatings) such increased maximum amount as ofsuch completion as specified bythe person conducting the physical change. 

## f661 (58) "Oil-fired" means, forthe purposes of section 8ofthis rule, combusting fuel oil for more than fifteen percent (15%) ofthe annual heat input in a specified yearand notqualifying as coal-fired. (59) "Operator" means any person who operates, controls, orsupervises a CAIR NO ozone season unit

ora CAIR NO ozone season source and shall include, but not be limited to, any holding 80mpany, utility system, or

### pla~t managerofsuch a unit orsource. 

## f&81 (60) "Owner" means any ofthe following persons: (A) With regard to a CAIR NO ozone season source ora CAIR NO ozone season unit at a source, respectively, any ofthe folloiring: x



### (i) af\Y 

### Holderofany portion ofthe legal orequitable title in aCAIR NO ozone season unit atthe source or the CAIR NO ozone season unit. x (ii) af\Y

### Holde~ ofa leasehold interest in a CAIR NO ozone season unit at the source orthe CAIR NO



### ozone season unit. 6f x x 

### (iii) af\Y 

### Purchaserof powerfrom a CAIR NO ozone season unitat the source orthe CAIR NO ozone
season unit undera life-of-the-unit, firm pow€rcontractual arrangement; provided that, unless €xpressly provided for in a leasehold agreement, ownershall not include a passive lessor, ora person who has an equitable interestthrough such lessor, whose rental payments are not based, eitherdirectly or indirectly,

on the revenues or income from such CAIR NO ozone season unit. ef x

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 55Indiana Register (B) With regard to any general account, any person who has an ownership interestwith respect to the CAIR NO ozone season allowances held in the general account and who is subjectto the binding agreementfor the'tAIR authorized account representative to represent the person's ownership interestwith respect to CAIR NO ozone season allowances. 

## f691 (61)

### "P~rmitting authority" means the state air pollution control agency, local agency, otherstate agency,
orotheragency authorized bythe U.S. EPAto issue or revise permits to meet the requirements ofthe CAIR NO annual trading program iA aeeereaAee wilR seelieA 7 ef IRis rule or, if no such agency has been so

### aut~orized, the U.S. EPA. 

## tw1 (62) "Potential electrical output capacity" means thirty-three percent (33%) ofa unit's maximum design heat input, divided bythree thousand four hundred thirteen (3,413) Btu/kilowatt hour, divided by one thousand (1,000) kilowatt hour/megawatt hour, and muitiplied by eightthousand seven hundred sixty (8,760) hours/year. 

## \M1 (63) "Rated energy efficiency" means the percentage ofgross energy inputthat is recovered as useable net energy output in the form ofelectricity orthermal energy, or both, that is used for heating, cooling, industrial processes, orother beneficiai uses as follows:

(A) Forelectric generators, rated energy efficiency is caiculated as one (1) net kilowatt hour (three thousand four hundred twelve (3,412) British thermal units) ofelectricity divided bythe unit's design heat rate using the higher heating vaiue ofthe fuel. (B) Forcombined heat and power projects, rated energy efficiency is calculated using the following formula: Eff% 

### =(NEO + UTO)/GEI

Eff% NEO UTO 

### = Rated energy efficiency.



### = Net eiectrical output ofthe system converted to British thermal units per unit oftime.



### = Utilized thermal output orthe energy vaiue in British thermal units ofthermal energyfrom the system that is used for heating, cooling, industrial processes, orother beneficial uses, per unit oftime. GEl 

### = Gross energy input, based upon the higher heating value offuel, per unit oftime. (64) "Receive" or "receipt of' means, when referring to the department or U.S. EPA, to come into possession of a document, information, orcorrespondence, whether sent in hard copy or by authorized electronictransmission, as indicated in an official log, or by a notation made on the document, information, or correspondence, bythe department or U.S. EPA in the regular course ofbusiness. 

### (6a1 (65) "Recordation", "record", or "recorded" means, with regard to CAIR NO ozone season allowances, the movement of CAIR NO ozone season allowances by the U.S. EPA into or 6etween CAIR NO ozone
season allowance tracking

### ~ystem accounts, for purposes ofallocation, transfer, ordeduction. x 

### (64) (66) "Reference method" means any directtest method ofsampling and analyzing for an air pollutant as specified in 40 CFR 75.22*. 

## fS!i1 (67) "Replacement", "replace", or "replaced" means, with regard to a unit, the demoiishing ofa unit, orthe permanent shutdown and permanent disabling ofa unit, and the construction ofanother unit (the replacement unit) to be used instead ofthe demolished orshutdown unit (the replaced unit). 

## fS!i1 (68) "Repowered" means, with regard to a unit, replacement of acoal-fired boilerwith one (1) ofthe following coal-fired technologies atthe same source as the coal-fired boiler: (A) Atmospheric or pressurized fluidized bed combustion. (B) Integrated gasification combined cycle. (C) Magnetohydrodynamics. (D) Direct and indirect coal-fired turbines. (E) Integrated gasification fuel cells. (F) As determined by the U.S. EPA in consultation with the Secretary of Energy, a derivative ofone (1) or
more ofthe technologies underclauses (A) through (E) and any othercoal-fired technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greaterwaste reduction relative to the performance oftechnology in widespread commercial use as ofJanuary 1, 2005. (69) "Sequential use of energy" means: (A) for atopping-cycle cogeneration unit, the use of reject heatfrom electricity production in a useful thermal energy application or process; or (B) for a bottoming-cycle cogeneration unit, the use of reject heat from useful thermal energy application or process in electricity production.

_ 

## f681 (70) "Serial number" means, for a CAIR NO ozone season allowance, the unique identification number assigned to each CAIR NO ozone

### seasonallow~nce by the U.S. EPA. 

## f691 (71) "Solid waste

### incin~ration unit" means a stationary, fossil-fuel-fired boilerorstationary, fossil-fuel-fired combustion turbine that is a solid waste incineration units as defined in the Clean AirAct, Section 129(g)(1). 

## f7G1 (72) "Source" means all buildings, structures, or installations located in one (1) or more.contiguous or adjacent properties undercommon control ofthe same person or persons. For purposes ofSection 502(c) of Where:

Dale: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-32608000SFDA Page 56Indiana Register
the Clean AirAct, a source, including a source with multiple units, shall be considered a single facility. 

## f7B (73) "Submit" or "serve" means to send ortransmit a document, information, or correspondence to the person specified in accordance with the applicable rule:

(A) in person; (B) by United States Postal Service; or (C) by other means ofdispatch ortransmission and delivery. Compliance with any submission orservice deadline shall be determined bythe date ofdispatch, transmission, or mailing and notthe date of receipt bythe departmentor U.S. EPA. (74) "Title V operating permit" or "Part 70 operating permit" means a permit issued under 326 lAC 2-7. 

## f731 (75) "Title V operating permit regulations" or "Part 70 operating permit regulations" means the rules under 326 lAC 2-7. 

## f741 (76) "Ton" means two thousand (2,000) pounds. Forthe purpose ofdetermining compliance with the CAIR NO ozone season emissions limitation, total tons ofnitrogen oxides emissions for a control period shall be calcul§ted as the sum of all recorded hourly emissions, orthe mass equivalent ofthe recorded hourly emission rates, in accordance with section 11 ofthis rule, butwith any remaining fraction of a ton equal to or greaterthan fifty-hundredths (0.50) tons deemed to equal one (1) ton and any remaining fraction of a ton less than fifty-hundredths (0.50) tons deemed to equal zero (0) tons. 

## f7&l (77) "Topping-cycle cogeneration unit" means a cogeneration unit in which the energy input to the unit is first used to produce useful power, including electricity, and at least some ofthe reject heatfrom the electricity production is then used to provide useful thermal energy. 

## f7&l (78) "Total energy input" means, with regard to a cogeneration unit, total energy ofall forms supplied to the cogeneration unit, excluding energy produced bythe cogeneration unit itself. Each form ofenergy supplied shall be measured by the lower healing value ofthat form of energy calculated as follows: LHV

### =HHV

- 10.55(W

### + 9H)

Where: LHV 

### = Lower heating value offuel in Btuthr. HHV 

### = Higher heating value offuel in Btuthr. W 

# = Weight 

### % ofmoisture in fuel. H 

### = Weight 

### % of hydrogen in fuel. 

## fR1 (79) "Total energy output" means, with regard to a cogeneration unit, the sum ofuseful powerand useful thermal energy produced bythe cogeneration unit. 

## f+Sl (80) "Unit" means:

.. (A) except as provided in clause (B), a stationary, fossil-fuel-fired boilerorcombustion turbine orother stationary, fossil-fuel-fired combustion device; and (B) solely forthe purposes ofapplying the term "large affected unit", a fossil-fuel-fired:

(i) stationary boiler; (ii) combustion turbine; or (iii) combined cycle system. 

## f797 (81) "Unit operating day" means a calendarday in which a unit combusts anyfuel. 

## t8G1 (82) "Unit operating**hou~'** or "hourof unit operation" means an hour in which a unit combusts any fuel. 

## ts-1-l (83) "Useful power" means, with regard to a cogeneration unit, electricity or mechanical energy made available for use, excluding any such energy used in the power production process, which process includes, but is not limited to, anyon-site processing ortreatment offuel combusted at the unit and anyon-site emission controls. 

## t8i!1 (84) "Useful thermal energy" means, with regard to a cogeneration unit, thermal energythat is: (A) made available to an industrial orcommercial process, not a power production process, excluding any heatcontained in condensate return or makeup water; (B) used in a heating application (for example, space heating ordomestic hot water heating); or (C) used in a space cooling application (that is, thermal energy used by an absorption chiller). (85) "Utility powerdistribution system" means the portion ofan electricity grid owned or operated by a utility and dedicated to delivering electricity to customers.

'These documents are incorporated by reference. Copies may be obtained from the Government Printing Office, 732 North Capitol Street NW, Washington, D.C. 20401 orare available for review and copying atthe Indiana Department of Environmental Management, Office ofAir Quality, Indiana Government Center-North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204. (AirPollution ControtBoard; 

### 326 lAC

### 24-3-2; filedJan 

### 26, 2007, 10:25a.m.: 20070221-IR-326050117FRA; errata filedJan 29,2007,2:43p.m.: 20070221-IR-326050117ACAI

Dale: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR-326080005FDA Page 57Indiana Register
SECTION 12. 326 lAC 24-3-7 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-3-7 Permit requirements Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-15; IC 13-17

Sec. 7. (a) Foreach CAIR NO ozone season source required to have a federally enforceable permit, the permit shall include a CAIR permil administered bythe department as follows: (1) ForCAIR NO sources required to have a Part 70 operating permit under 326 lAC 2-7, the CAIR portion of the Part 70 perma shall be administered in accordance with 326 lAC 2-7, except as provided otherwise by this section and sections 3 and 12 ofthis rule. (2) ForCAIR NO sources required to have a FESOP under 326 lAC 2-8, the CAIR portion ofthe FESOP shall be administered (n accordance with 326 lAC 2-8, except as provided otherwise bythis section and sections 3 and 12 ofthis rule. (3) Each CAIR permit, including a draft or proposed CAIR permit, if applicable, shall contain, with regard to the CAIR NO ozone season source and the CAIR NO ozone season units at the source covered by the CAIR permit, al(applicable CAIR NO ozone season trading program, CAIR NO annual trading program, and CAIR S02 trading program requirem&nts and shall be a complete and separabl€portion ofthe Part 70 operating permit or FESOP.

(b) Requirements for the submission of CAIR permit applications are as follows: (1) The CAIR designated representative of any CAIR NO ozone season source required to have a Part 70 operating permit or FESOP shall submit to the

### departme~t a complete CAIR permit application under sUbsection (c) for the source covering each CAIR NO ozone season unit at the source at least two hundred seventy (270) days before the laterofJanuary 1, 2009, orthe date on which the CAIR NO ozone season unit

commences commercial operation, except as provided in section 12(e) ofthis rule. x (2) Fora CAIR NO ozone season source required to have a Part 70 operating permit or FESOP, the CAIR designated repres€ntativeshall submit a complete CAIR permit application undersubsection (c) for the source covering each CAIR NO ozone season unit at the source to renew the CAIR permit in accordance with 326 lAC 2-7-4(a)(1 )(0) or326 lAC 2-8-3(h), as applicable, except as provided in section 12(e) ofthis rule.

(c) IA eElElilieA Is IRe**re~UireFAeAls** sf326 lAG 2 7 4(s) sr 326 lAG 2 8 3(s), A complete CAIR permit application shall include the following elements concerning the CAIR NO ozone season source for which the application is submitted: x (1) Identification ofthe CAIR NO ozone season source. (2) Identification ofeach CAIR N6 ozone season unit atthe CAIR NO ozone season source. (3) The standard requirements undersection 4 ofthis rule. x

(d) IA aElElilisA Is IRa**re~uireFAeAls** uAEler 326 lAG 2 7 or 326 lAG 2 8. Each CAIR permit shall contain, in a format prescribed bythe department, all elements required for a complete CAIR permit application under subsection (c).

(e) Each CAIR permit is deemed to incorporate automaticallythe definitions ofterms under section 2 ofthis rule and, upon recordation by the U.S. EPA undersection 9, 10, or 12 ofthis rule, every allocation, transfer, or deduction ofa CAIR NO ozone season allowance to orfrom the compliance account ofthe CAIR NO ozone
season source covered By the permit. x

(I) The initial CAIR permit covering a CAIR unitfor which a complete CAIR permit application is timely submitted under subsection (b) shall become effective upon issuance.

(g) The term ofthe CAIR permit shall be set by the department, as necessary to facilitate coordination ofthe renewal ofthe CAIR permit with issuance, revision, or renewal ofthe CAIR NO ozone season source's Part 70 operating permit or FESOP. x

(h) Except as provided in subsection (e), the department shall revise the CAIR permit, as necessary, in accordance with the following:

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 58Indiana Register (1) The permit modification and revision provisions under 326 lAC 2-7, for a CAIR source with a Part 70 operating permit. (2) The permit modification and revision provisions under 326 lAC 2-8, for a CAIR source with a FESOP. (AirPollution ControlBoard; 326 lAC24-3-7; filedJan 26, 2007, 10:25a.m.: 20070221-IR-326050117FRAJ

SECTION 13. 326 lAC 24-3-8 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-3-8 CAIR NO ozone season allowance allocations
x Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-15; IC 13-17

Sec. 8. (a) The NO ozone season trading program budget allocated by the department under subsections (d) through 

### U) for each coAtrol period shall equal the total numberof CAIR NO ozone season allowances apportioned to the CAIR NO ozone season units under section 1 ofthis rule forthe control period, as determined by the procedures in this sec)ion. The total numberof CAIR NO ozone season allowances that are available for each control period for allocation as CAIR NO ozone season afiowances underthis rule are fifty-five thousand

seven hundred twenty-nine (55,729) tons in 2009 through 2014, and forty-nine thousand fifty (49,050) tons in 2015 and thereafter, apportioned as follows: (1) Forexisting units (that is, units that have a baseline heat input, as determined under subsections (c) and 

### (d»:

(A) forty-three thousand six hundred fifty-four (43,654) tons in 2009 through 2014 and thirty-eight thousand ninety-five (38,095) tons in 2015 and thereafterfor CAIR NO ozone season units undersection 1(a)(1) of this rule; and x (B) eightthousand five hundred sixty-four (8,564) tons in 2009 and eightthousand seven hundred twenty-seven (8,727) tons for large affected units under section 1(a)(2) ofthis rule for a control period during 2010 and thereafter. (2) For new unit allocation set-asides:

(A) two thousand two hundred ninety-eight (2,298) tons in 2009 through 2014 and one thousand one hundred seventy-eight (1,178) tons in 2015 and thereafterfor CAIR NO ozone season units undersection 1(a)(1)ofthis rule; and x (B) ninety-eight (98) tons in 2009 and four hundred (400) tons in 2010 and thereafterfor large affected units undersection 1(a)(2) ofthis rule. (3) Forthe energy efficiency and renewable energy allocation set-aside, one thousand one hundred fifteen (1,115) tons in 2009 and five hundred (500) tons in 2010 and thereafter. (4) Fora hardship set-aside for large affected units undersection 1(a)(2) ofthis rule, one hundred fifty (150) tons in 2010 and thereafter.

(b) The departmentshall allocate CAIR NO ozone season allowances to CAIR NO ozone season units according to the following schedule: x x (1) ForCAIR NO ozone season units undersection 1(a)(1) and large affected units under 1(a)(2) ofthis rule,

an initial five (5) year allocation and then a six (6) year allocation that is recorded six (6) years in advance of the control period that the allowances may be used as follows: (A) Within thirty (30) days ofthe effective date ofthis rule, the departmentshall submit to the U.S. EPAthe CAIR NO ozone season allowance allocations, in a format prescribed by the U.S. EPA and in accordance with

### sUbs~ctions (c), (d), and (e) forthe control periods in 2010, 2011,2012,2013, and 2014. (B) By October 31,2008, and October31 every six (6) years thereafter, the department shall submitto the U.S. EPAthe CAIR NO ozone season allowance allocations, in a format prescribed by the U.S. EPAand in accordance with sUbse6tions (c), (d), and (e), forthe control periods seven (7), eight (8), nine (g), ten (10), eleven (11), and twelve (12) years afterthe year ofthe allowance allocation. (C) By July 31,2009 and July 31 ofeach year thereafter, the department shall submitto the U.S. EPAthe CAIR NO ozone season allowance allocations, in a format prescribed by the U.S. EPA and in accordance with

### sUbs~ctions (f) through (h), forthe control period in the year ofthe applicable deadline for submission underthis rule. (D) Forthe 2009 control period, the CAIR NO ozone season allowances are the 2009 ozone season allowances issued under 326 lAC 10-4-9 that'have been recorded by U.S. EPA as ofthe effective date of this rule. (2) The departmentshall make available for review to the public the CAIR NO allowance allocations under
x

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 59Indiana Register
subdivision (1 )(B) on July31 ofeach year allocations are made and shall provide athirty (30) day opportunity for submission ofobjections to the CAIR NO allowance allocations. Objections shall be limited to addressing whetherthe CAIR NO allowance allocations"are in accordance with this section. Based on any such objections, the departfuent shall consider any objections and inputfrom affected sources and, ifappropriate, adjust each detenmination to the extent necessaryto ensure that it is in accordance with this section.

(c) The baseline heat input, in million British thermai units (MMBtu), used with respect to CAIR NO ozone
season allowance allocations under subsection (d) for each CAIR NO ozone season unit shall be: x (1) For units commencing operation before January 1, 2001: x

(A) For a CAIR NO ozone season allowance allocation undersubsection (b)(1 )(A), the average ofthe three (3) highest amount§ ofthe unit's adjusted control period heat inputfor 1998 through 2005, with the adjusted control period heat inputfor each year calculated as follows:

(i) Ifthe unit is coal-fired during the year, the unit's control period heat inputfor such year is multiplied by

one hundred percent (100%). (ii) Ifthe unit is oil-fired during the year, the unit's control period heat input for such year is multiplied by sixty percent (60%). (iii) Ifthe unit is not SUbjectto item (i) or (ii), the unit's control period heat inputfor such year is multiplied by forty percent (40%). (B) Fora CAIR NO ozone season allowance allocation undersubsection (b)(1 )(B), the unit's average ofthe three (3) highest arhounts ofthe unit's adjusted control period heat input for the eight (8) years before when the CAIR NO ozone season allocation is being calculated, with the adjusted control period heat inputfor each year ca(culated as follows:

(i) Ifthe unit is coal-fired during the year, the unit's control period heat input for such year is multiplied by

one hundred percent (100%). (iI) Ifthe unit is oil-fired during the year, the unit's control period heat inputfor such year is multiplied by sixty percent (60%). (iii) Ifthe unit is not subject to item (i) or (ii), the unit's control period heat inputfor such year is multiplied by forty percent (40%). (2) For units commencing operation on or afterJanuary 1, 2001 ,and operating each calendar year during a period ofthree (3) or more consecutive calendaryears, the average ofthe three (3) highest amounts ofthe unit's total converted control period heat inputfor the years before when the CAIR NO ozone season allocation is being calcuiated, not to exceed eight (8). x (3) A unit's control period heat input, and a unit's status as coal-fired or not coal-fired, for a calendaryear undersubdivision (1), and a unit's total tons of NO ozone season emissions during a control period in a calendaryear under subsection (e)(3), shall be de(ermined in accordance with 40 CFR 75", to the extent the unitwas otherwise subject to the requirements of40 CFR 75" for the year, or shall be based on the best available data reported to the departmentfor the unit, to the extent the unitwas not otherwise subject to the requirements of40 CFR 75" for the year. (4) A unit's converted control period heat inputfor a calendaryear under subdivision (2) equals one (1) ofthe following: (A) The control period gross electrical output ofthe generatoror generators served by the unit multiplied by eight thousand nine hundred (8,900) British thermal units per kilowatt hour (Btu/kWh) for coal-fired units or
seven thousand six hundred (7,600) British thermal units per kilowatt hour (Btu/kWh) for a unit that is not coal-fired divided by one million (1,000,000) British thermal units per million British thermal units (Btu/MMBtu), provided that if a generator is served by 

### two (2) or more units, then the gross electrical output ofthe generatorshall be attributed to each unit in proportion to the unit's share ofthe total control period heat input ofsuch units for the year. (B) For a unitthat has equipment used to produce electricity and useful thermal energy for industriai, commercial, heating, or cooling purposes through the sequential use of energy, the control period gross electrical output ofthe unit muitiplied by eight thousand nine hundred (8,900) British thermal units per kilowatt hour (Btu/kWh) pius the useful energy, in British thermal units (Btu), produced during the control period divided by eight-tenths (0.8), and with the sum divided by one million (1,000,000) British thermal units per million British thermal units (Btu/MMBtu).

(d) The department shall allocate CAIR NO ozone season allowances to all CAIR NO ozone season units undersection 1(a)(1) ofthis rule as follows: x x (1) Forthe control period in 2009, the CAIR NO ozone season allowances are the 2009 ozone season allowances issued under 326 lAC 10-4-9 that

### h~ve been recorded by U.S. EPA as ofthe effective date ofthis rule. (2) For each control period in 2010 and thereafter, the department shall allocate to all CAIR NO ozone season x

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 60

### Indiana Register
unitsthat have a baseline heat input, as determined undersubsection (c), atotal amount of CAIR NO ozone
season allowances as listed in subsection (a)(1), except as provided in subsection 

### (I). x (3) The department shall allocate CAIR NO ozone season allowances to each CAIR NO ozone season unit underthis subsection, except large affected'units, in an amount determined by multiplying the total amount of CAIR NO ozone season allowances allocated underthis subsection by the ratio ofthe baseline heat input of such CAIR NO ozone season unitto the total amount of baseline heat input ofall such CAIR NO ozone
season units aAd rounding to the nearestwhole allowance as appropriate. x



### (e) The department shall allocate CAIR NO ozone season allowances to each large affected unit under section 1(a)(2) ofthis rule as follows: x 

### (1) Forthe control period in 2009, the CAIR NO ozone season allowances are the 2009 ozone season allowances issued under326 lAC 10-4-9 that h§ve been recorded by U.S. EPA as ofthe effective date ofthis rule. (2) Forthe control period in 2010 and thereafter, afixed CAIR NO ozone season allowance allocation to the following large affected units: x 

### Source Unit Allowances (A) American Electric Power-Rockport Auxiliary Boiler 1 2 Auxiliary Boiler2 2 (B) Portside Energy Auxiliary Boiler 1 50 Auxiliary Boiler2 5 Combustion Turbine 34 (3) Forthe control period in 2010 and thereafter, all large affected units that commenced operation before January 1, 2001, and not identified in subdivision (2), CAIR ozone season NO allowances will be allocated as**~~:** x 

### (A) The target NO emission rate for purposes ofallowance allocation for all large affected units that commenced oper§tion before January 1, 2001, shall be as follows:



### ....,:-' 0.17 0.368 0.240 0.17 Target NO Emission
x 

### Rate (Ib NO IMMBtu)
x 

### 0.184 Source (I) 

### BP Whiting Business (units 1SPS13, 1SPS14, 1SPS15, 1SPS16, 1SPS17, 3SPS31, 3SPS32, 3SPS33, 3SPS34, 3SPS36) (ii) C.C. Perry Steam (units 11, 13, 14) (iii) C.C. Perry Steam (unit 12) (iv) C.C. Perry Steam (units 15, 16) (v) Mittal Steel Indiana Harbor(units 211, 212, 213, 401, 402, 403,404,405,501,502,503) (vi) New Energy (unit U400) 0.24 (vii) Purdue University (units 1, 2) 0.24 (viii) Purdue University (unit 3) 0.17 (ix) Purdue University (unit 5) 0.24 (x) U.S. Steel- GaryWorks (units 701 B1, B2, B3) 0.09 (xi) U.S. Steel

- Gary Works (units 701 B5) 0.08 (xii) U.S. Steel

- Gary Works (units 701 B6) 0.05 (xiii) U.S. Steel

- GaryWorks (units 720 B1, B2, B3) 0.06 (xiv) Warrick (units 1,2,3) 0.28 (B) The maximum design heat input based NO rate allocation shall be the product ofthe design heat input (Design HI), in million British thermal units perAour (MMBtu/hr), multiplied by three thousand six hundred seventy-two (3,672) hours multiplied by the target NO emission rate in clause (A), in pounds per million British thermal units (lb/MMBtu), multiplied byfifty

### per~ent (50%), and divided by two thousand (2,000). The Design HI, in million British thermal units per hour (MMBtu/hr), shall be the value supplied to the U.S. EPA in the RT504 field ofthe quarterly electronic data report (EDR) as required in section 11 ofthis rule or equivalent quality assured and certified data. (C) The actual heat input based NO rate allocation shall be the product ofthe actual control period heat input multiplied by the target NO erilission rate in clause (A) divided by two thousand (2,000) where:



### (I) the unit's actual control

### perio~ heat inputshall be determined using one hundred twenty percent (120%) ofthe highest actual control period heat input recorded in:

(AA) the years 2000 through 2005 for an allocation under subsection (b)(1 )(A); and

Dale: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 61Indiana Register (88) the eight (8) years before the yearthe CAIR NO ozone seaSon allocation is being calculated under subsection (b)(1)(8); and ' (ii) actual control period heat input shall be based on the best available data for each control period reported in accordance with section 11 ofthis rule and 40 CFR Part 75' orfor control periods priorto 2008 certified accurate by a responsible official in accordance with 326 lAC 2-7-4(f). (D) The total ozone season CAIR NO allocation shall be the sum ofthe maximum design heat input based NO rate allocation and actual heat

### in~ut based NO rate allocation. (E)

# 11 the initial total numberof NO allowances all02ated to all large affected units for acontrol period under this subsection does not equal the'amount under subsection (a)(1)(8), the department shall adjust the total numberof NO allowances allocated to all large affected units forthe control period underthis subdivision

so that the tot&1 numberof NO allowances allocated equals the amount under subsection (a)(1)(8) minus the allocations undersUbdivisi6n (2). This adjustment shall be made by:

(I) multiplying each unit's allocation bythe amount undersubsection (a)(1 )(6) minus the amounts allocated in subdivision (2); and (ii) dividing by the total numberof NO allowances allocated underthis subdivision, and rounding to the nearestwhole NO allowance, as app'ropriate. 

# ,
(f) Foreach control period in 2009 and thereafter, the department shall allocate CAIR NO ozone season allowances to CAIR NO ozone season units undersection 1(a)(1) ofthis rule that

### commenc~d operation on or afterJanuary 1, 2001,

### a~d do notyet have a baseline heat input, as determined undersubsection (c), in accordance with the following procedures: (1) ForCAIR NO ozone season units undersection 1(a)(1) ofthis rule, the department shall establish a separate new unft set-aside for each control period equal to two thousand two hundred ninety-eight (2,298) tons for a control period during 2009 through 2014 and one thousand one hundred seventy-eight (1,178) tons for acontrol period during 2015 and thereafter. (2) The CAIR designated representative of such a CAIR NO ozone season unit may submit to the department

a request, in aformat specified bythe department, to be allo"cated CAIR NO ozone season allowances, starting with the laterofthe control period in 2009 orthe first control period a'tterthe control period in which the CAIR NO ozone season unit commences commercial operation and until the first control period for which the unit is all6cated CAIR NO ozone season allowances undersubsection (d). A separate CAIR NO ozone
season allowance allocati6n request for each control period forwhich CAIR NO ozone season

### a~owances are sought must be submitted on or before February 1 ofsuch control period and

### a~er the date on which the CAIR NO ozone season unit commences commercial operation.

. (3) fn a CAIR NO ozone season allowance allocation request undersubdivision (2), the CAIR designated representative m&y request for a control period CAIR NO ozone season allowances in an amount not exceeding the CAIR NO ozone season unit's total tons 01 NO ozone season emissions during the calendar year immediately before'such control period. ' (4) The departmentshall review each CAIR NO ozone season allowance allocation request undersubdivision (2) and shall allocate CAIR NO ozone season

### ~lIowances for each control period pursuant to such request as follows: ' (A) The departmentshall accept an allowance allocation request only ifthe request meets, or is adjusted by the department as necessary to meet, the requirements ofsubdivisions (2) and (3). (8) On orafter February 1 ofthe control period, the department shall determine the sum ofthe CAIR NO

ozone season allowances requested, as adjusted underclause (A), in ail allowance allocation requests ' accepted under clause (A) for the control period. (C) Ifthe amount ofCAIR NO, ozone season allowances in the new unit set-aside forthe control period is greaterthan orequal to the sum underclause (8), then the departmentshall allocate the amount of CAIR NO ozone season allowances requested, as adjusted underclause (A), to each CAIR NO ozone season uni{covered by an allowance allocation request accepted under clause (A). ' (D) 

### Ifthe amount of CAIR NO ozone season allowances in the new unit set-aside forthe control period is less than the sum underclaus"e (8), then the department shall allocate to each CAIR NO ozone season unit covered by an allowance allocation request accepted underclause (A) the amount ofthe'CAI R NO ozone
season allowances requested, as adjusted under clause (A), multiplied by the amount of CAIR NO'ozone
season allowances in the new unitset-aside forthe control period, divided by the sum determined Dnder clause (8), and rounded to the nearestwhole allowance as appropriate. (E) The departmentshall notifyeach CAIR designated representative that submitted an allowance allocation request ofthe amount of CAIR NO ozone season allowances, ifany, allocated forthe control period to the

...... CAIR NO ozone season unit cove?ed bythe request and submit to U.S. EPA according to section (b)(3). 

# ,
(g) Foreach control period in 2009 and thereafter, the departmentshall allocate CAIR NO ozone season 

# ,

Dale: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 62Indiana Register
allowances to large affected units undersection 1(a)(2) ofthis rule that commenced operation on orafterJanuary 1, 2001, in accordance with the following procedures: (1) For large affected units undersection 1(a)(2) ofthis rule, the department shall establish a separate new unit set-aside for each control period equal to ninety-eight (98) tons in 2009 and four hundred (400) tons in 2010 and thereafter. (2) The CAIR designated representative of such a CAIR NO ozone season unit may submit to the department

a request, in a format specified bythe department, to be allo"cated CAIR NO ozone season allowances, starting with the laterofthe control period in 2009 orthe first control period a"nerthe control period in which the CAIR NO ozone season unit commences commercial operation and until the first control period for which the unit is all6cated CAIR NO ozone season allowances undersubsection (e). A separate CAIR NO ozone
season allowance

### allocati~n request for each control period forwhich CAIR NO allowances are gought must be submitted on or before February 1 ofsuch control period and afterthe date 6n which the CAIR NO ozone
season unit commences commercial operation. ' (3) In a CAIR NO ozone season allowance allocation request undersubdivision (2), the CAIR designated representative

### m~y request for a control period CAIR NO ozone season allowances in an amount not exceeding the following for determining the total ozone s€asonCAIR NO allocation: (A) The target NO emission rate for allowance allocation purposes for'units that commence operation on or afterJanuary 1, 2601, shall be determined as the lesserofseventeen-hundredths (0.17) Ib/MMBtu orthe federally enforceable limit on NO emissions found in any applicable permit or rule for the emissions unit, exceptthat a combined heat and'power unitwith an overall rated energy efficiency ofsixty percent (60%) or higher may request allowances based on seventeen-hundredths (0.17) Ib/MMBtu notwithstanding the allowable emission rate. (B) The maximum design heat input based NO rate allocation shall be the product ofthe design heat input (Design HI), in million British thermal units perAour (MMBtu/hr), multiplied bythree thousand six hundred seventy-two (3,672) hours multiplied bythe target NO emission rate in clause (A), pound per million British thermal units per hour (lb/MMBtu), multiplied byfifty

### p~rcent (SO%), and divided by two thousand (2,000). The Design HI, in million British thermal units per hour (MMBtu/hr), shall be the value supplied to the U.S. EPA in the RTS04 field ofthe quarterly electronic data report (EDR) as required in section 11ofthis rule or equivalentqualityassured and certified data. (C) The actual heat input based NO rate allocation shall be the product ofthe actual control period heat input multiplied bythe target NO erl\ission rate in clause (A) divided bytwo thousand (2,000) where:

(i) the unit's actual control perio'd heat input shall be determined using one hundred twenty percent (120%) ofthe highest actual control period heat input recorded in the calendaryears, since the startup ofthe unit, immediately preceding the allocation year, notto exceed eight (8) years; and (Ii) actual control period heat input shall be based on the best available data for each control period reported in accordance with section 11 ofthis rule and 40 CFR Part 7S". (D) The total ozone season CAIR NO allocation that may be requested shall be the sum ofthe maximum design heat input based NO rate allo'Cation and actual heat input based NO rate allocation. (4) The department shall revie(\. each CAIR NO ozone season allowance allo&tion request undersubdivision (2) and shall allocate CAIR NO ozone season

### ~IIowances for each controi period pursuant to such request as follows: ' (A) The department shall accept an allowance allocation request only ifthe request meets, or is adjusted by the department as necessaryto meet, the requirements ofsubdivisions (2) and (3). (B) On orafter February 1 ofthe control period, the department shall determine the sum ofthe CAIR NO

ozone season allowances requested, as adjusted underclause (A), in all allowance allocation requests ' accepted underclause (A) for the control period. (C) Ifthe amount ofCAIR NO ozone season allowances in the new unit set-aside forthe control period is greaterthan or equal to the sJm underclause (B), then the department shall allocate the amount ofCAIR NO ozone season allowances requested, as adjusted underclause (A), to each CAIR NO ozone season uni{covered by an allowance allocation request accepted underclause (A). ' (D) Ifthe new unit set-aside forthe control period forwhich NO allowances are requested has an amount of NO allowances less than the number requested, as adjusted u'nderclause (A), but the energy efficiency and'renewable energy allocation set-aside or hardship set-aside for large affected units is under-subscribed, the department shall allocate the amount ofthe NO allowances requested with the difference allocated from the energy efficiency and renewable energy allocat(on or hardship set-aside. (E) Ifthe new unit set-aside for the control period forwhich NO allowances are requested has an amount of NO allowances less than the number requested, as adjusted J'nderclause (A), and the energy efficiency and'renewable energy allocation set-aside or hardship set-aside for large affected units is over-subscribed, the department shall allocate the allocation set-aside on a pro rata basis, multiplied by the amount ofCAIR NO ozone season allowances in the new unit set-aside for the control period, divided by the sum**det~rmined** underclause (B), and rounded to the nearestwhole allowance as appropriate.

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR·326080005FDA Page 63Indiana Register (F) The departmentshall notifyeach CAIR designated representative that submitted an allowance allocation request ofthe amount of CAIR NO ozone season allowances, ifany, aliocated forthe control period to the CAIR NO ozone season unit

### cove~ed bythe request. (5) Large affected units commencing operation afterJanuary 1, 2001, and allocated allowances underthis subsection shall be eligibie to receive allowances from the new unitset-aside untii allocated allowances in accordance with the provisions ofsubsection (e). The inventory ofsources in subsection (e) shall be updated priorto the allowance allocations in calendaryear2008 (forcompliance years 2015-2020), in calendary$<lr 2014 (forcompliance years 2021-2026) and every six (6) years thereafter.

(h) If, aftercompletion ofthe procedures undersubsections (I), (g), and (i) for acontrol period, any unallocated CAIR NO ozone season allowances remain in a new unit set-aside forthe control period, the departmentshall allocate

### t~ each CAIR NO ozone season unitthat was allocated CAIR NO ozone season allowances under subsection (d) an amount'bfCAIR NO ozone season allowances equal tolhe following: (1) ForCAIR NO units under

### sectl~n 1(a)(1), the total amount ofsuch remaining unallocated CAIR NO ozone
season

### allowanc~s, multiplied bythe unit's allocation under subsection (d), divided byforty-three

### thous~nd six hundred fifty-four (43,654) for a control period during 2009 through 2014, and thirty-eight thousand ninety-five (38,095) fora control period during 2015 and thereafter. (2) For large affected units, the total amount ofsuch remaining unallocated CAIR NO ozone season allowances, multiplied by the unit's allocation undersubsection (d), divided by eighttt'iousand five hundred sixty-four (8,564) in 2009 and eightthousand seven hundred twenty-seven (8,727) in 2010 and thereafter.

(i) For projects that reduce NO emissions through the implementation of energy efficiency or renewable energy measures, or both, implem"ented during a control period beginning May 1, 2009, the departmentshall allocate NO allowances in accordance with the following procedures: (1) The €nergyefficiencyand renewable energy allocation set-aside shall be allocated NO allowances equal to one thousand one hundred fifteen (1,115) tons in 2009 and five hundred (500) tons in 2010 and thereafter. (2) Any person may submitto the department a request, in writing, or in a format specified by the department, for NO allowances as follows: (A) Sponsors ofenergy efficiency or renewable energy projects in section 2(3S)("') 2(40)(A) through 2(3S)(H) 2(40)(H) ofthis rule may request the reservation ofNO allowances, for one (1) control period in which the project is implemented. Project sponsors may reapply'each year, notto exceed five (5) control periods forenergy efficiency projects in sections 2(3S)(A), 2(3S)(8), 2(3S)(E), 2(40)(A), 2(40)(8), 2(40)(E), and 2(3S)(F) 2(40)(F) ofthis rule and for an unlimited numberofyears for projects in sections 2(3S)(G), 2(3S)(D), 2(40)(C), 2(40)(0), and 2(3S)(H) 2(40)(H) ofthis ruie. Requests for allowances may be made for projects implemented two (2) years before the effective date ofthis rule. Projects must equal at least one (1) ton of NO emissions and multiple projeCts may be aggregated into one (1) allowance allocation request to equal one"(1) or more tons of NO emissions. (6) The NO allowance allocation'request must be submitted by May 1 ofthe calendaryearforwhich the NO allowaAce allocation Is requested. (C)'rhe NO allowance allocation request for an integrated gasification combined cycle project under section 2(381(G) 2(40)(G) ofthis rule must be submitted by May 1 ofthe calendaryearfor which the NO allowance allocation is requested and afterthe date on which the department issues a permit to

### constru~t the CAIR NO unit. For integrated gasification combined cycle projects, project sponsors may requestthe reservation ofNO allowances, based on the numberof kilowatt hours ofelectricity generated based on an eighty-five percent (85%) capacityfactor and expected heat rate ofthe unit. Project sponsors may reapply each year, notto exceed five (5) control periods. Requests for allowances may be made onlyfor integrated gasification combined cycle projects which first start commercial operations in 2009 and beyond. (3) In a NO allowance allocation request made underthis subsection, the CAIR designated representative may reques't for a control period, NO allowances notto exceed the following:

(A) Projects in section 2(3S)(A) 2(40)(A) ofthis rule that claim allowances based upon reductions in the consumption ofelectricityand that are sponsored by end-users or nonutility third parties receive allowances based upon the numberof kiiowatt hours of electricity saved during a control period and the following formula: Allowances = (kWS x 0.0015)/2,000

Where: Allowances 

### = The numberofallowances awarded to a project sponsor. kWS 

### = The numberof kilowatt hours ofelectricity saved during an ozone control period by the project. (B) Projects in section 2(3S)(A) 2(40)(A) ofthis rule that claim allowances based upon reductions in the consumption ofelectricityand that are sponsored by electric generating units shall be awarded allowances

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 64Indiana Register according to the following formula:

Allowances kWS Allowances 

### = (kWS x 0.00075/2,000)



### = The numberof allowances awarded to a project sponsor.



### = The numberof kilowatt hours ofelectricitysaved during an ozone control period by the project. (C) Projects in section 2(38)(A) 2(40)(A) ofthis rule that claim allowances based upon reductions in the consumption ofenergy otherthan electricity and that are not CAIR NO ozone season units shall be awarded allowances according to the following formula: x Allowances 

### = «((Et1/Pt1)

- (Et2/Pt2)) x Pt2 x NPt2 x (NPt1/NPt2))/2,000 Where:

Allowances Et1 Pt1 Et2 Pt2
NPt1 

### = The numberofallowances awarded to a project sponsor.



### = Energy consumed perozone control period before project implementation.



### = Units of product produced perozone control period before project implementation.

= Energy consumed in the most recent ozone control period.

= Units of product produced in the most recent ozone control period.

= NOxproduced during the consumption of energy, measured in pounds per million
British thermal units before project impiementation.

NPt2 

### = NOxproduced during the consumption ofenergy, measured in pounds per million
British thermal units in the most recent ozone control period. (0) Projects in section 

### 2(38)(1\) 2(40)(A) ofthis rule that claim allowances based upon reductions in the consumption ofenergy otherthan electricity and that are CAIR NO ozone season units shall be awarded allowances according to the following formula: x Allowances 

### = (((Et1/Pt1)

- (Et2/Pt2)) x Pt2 x NPt2 x (NPt1/NPt2) x 0.5)12,000 Where:

Allowances Et1 Pt1 Et2 Pt2
NPt1

Allowances kWG 

### = The numberofallowances awarded to a project sponsor.



### = Energy consumed perozone control period before project implementation.



### = Units of product produced perozone control period before project implementation.



### = Energy consumed in the most recent ozone control period.

= Units of product produced in the most recent ozone controi period.

= NO produced during the production process, measured in pounds per million x British thermal units before project implementation.

NPt2 

### = NO produced during the production process, measured in pounds per million x British thermal units in the most recent ozone control period.
Product produced, as used in the formulas in this clause and clause (C), may include manufactured items:
raw, intermediate, orfinal materials; orother products measured in discrete units and produced as a result ofthe consumption ofenergy in a specific process or piece ofequipment. Claims for allowances must include documentation of NO emissions per British thermal unit both before and after implementation ofthe projectforthe energy-consuJ;ing process for which energy savings are claimed. (E) Projects in section 2(38)(8) 2(40)(8) ofthis rule that claim allowances based upon highlyefficient electricity generation using systems such as combined cycle, microturbines, and fuel cell systems forthe predominant use ofa single end user, that meetthe thresholds specified in section 2(38)(8) 2(40)(8) ofthis rule, that are not CAIR NO ozone season units under section 1 ofthis rule or large affected units as defined in section 2 ofthis rule, ana that are sponsored by end-users or nonutilitythird parties, receive allowances based upon the net amount ofelectricity generated during a control period and the following formula: Allowances 

### = (kWG x (0.0015

- NOx»/2,000



### = The numberofallowances awarded to a project sponsor.

= The numberof net kilowatt hours of electricity generated during an ozone controi period bythe project.
NO 

### = The amount of NO produced during the generation of electricity, measured in x x pounds per kilowatt hour. (F) Projects in section 2(38)(8) 2(40)(8) ofthis rule that claim allowances based upon highly efficient combined heat and powersystems forthe predominant use ofa single end user, that meetthe thresholds specified in section 2(38)(8) 2(40)(8) ofthis rule, that are not CAIR NO ozone season units under section 1 ofthis rule or large affected units as defined in section 2 ofthis rule, ana that are sponsored by end-users or
nonutility third parties, receive allowances based upon the net amount ofenergy generated and used during Where:

Where:

Date: Jun 26,2009 9:29:21AM EDT DIN: 200B0123-IR-3260B0005FDA Page 65Indiana Register

NO CHP 

# , Where: Allowances NO, conventional an ozone control period and the following formuia: Allowances

# =(NO conventional

- NO CHP)/2,000 

# , 

# ,

= The numberofallowances awarded to a project sponsor.



### = [(0.15 x 3,412 x kWG 10.34) + (0.17 x HeatOuti 0.8)]/1,000,000



### = (Btuln x NO,Rate)/1,000,000
kWG 

### =The numberof net kilowatt hours ofelectricity generated during an ozone control period bythe project. HeatOut

### =The numberofBritish thermal units (Btu) of heat orsteam effectively used for space, water, or industrial process heat during an ozone control period bythe project.
NO Rate 

### = NO emitted during normal system operation bythe project, 

# , , measured in pounds per million Btu offuel input.
Btuln 

### =The numberof British thermal units (Btu) offuel used to produce electricity, heat, or steam during an ozone control period by the project. (G) Projects in section 2(38)(8) 2(40)(B) and 2(38)(G) 2(40)(G) ofthis rule receive allowances based upon the numberofkilowatt hours ofelectricity each project generates during an ozone control period. Highiy efficient electricity generation projects using systems such as combined cycle, microturbines, and fuel cell systems forthe predominant use ofa single end user, that meet a rated energy efficiencythreshold ofsixty percent (60%) for combined cycle systems and forty percent (40%) for microturbines and fuel cells; or integrated gasification combined cycle, and that are sponsored by NO allowance account holders that own
oroperate unitsthat produce electricity and are subjectto the emissioA limitations ofthis rule receive allowances based upon the net amount ofelectricity generated during an ozone control period and the following formula: Where:

Allowances 

### = (kWG x (0.0015

- NO ) x 0.5)/2,000 

# , Where: Allowances = The numberofallowances awarded to a project sponsor. kWG 

### = The numberof net kilowatt hours of electricity generated during an ozone control period bythe project.

. .c"

.... NO, = The amount ofNO, produced during the generation ofelectricity, measured in pounds per kilowatt hour. (H) Projects in section 2(38)(G) 2(40)(C) and 2(38)(8) 2(40)(0) ofthis rule receive allowances based upon the number of kilowatt hours ofelectricity each project generates during an ozone control period and according to the following formula: Allowances 

### = (kWG

, 0.0015)/2,000

Where: Allowances 

### = The numberofallowances awarded to a project sponsor. kWG 

### = The numberofkilowatt hours ofelectricity generated during an ozone control period by the project. (I) Projects in section 2(38)(1;;), 2(38)(G), 

### aRE! 2(38)(F) 2(40)(E) through 2(40)(G) ofthis rule receive allowances based upon the difference in emitted NO per megawatt hourofoperation for units before and after replacement or improvement and according to the following formula: Allowances 

### = «Et1

- Et2) x h) x 0.5)/2,000

Where: Allowances = The numberofallowances awarded to a project sponsor. Et1 

### = The emission rate in pounds per megawatt hourof NO, ofthe unit before improvement or replacement.

Et2 = The emission rate in pounds per megawatt hourof NO, ofthe unit after improvement or replacement.
h 

### = The numberof megawatt hours ofoperation during the ozone control period. (J) Projects in section 2(38)(A) 2(40)(A) ofthis rule that claim allowances based upon reductions in the consumption of electricityand that are large affected units shall be awarded allowances according to the following formula:

Where: Allowances 

### = (kWS x NO x 0.5)/2,000) 

# , Allowances 

### = The numberofallowances awarded to a project sponsor. kWS = The number ofkilowatt hours ofelectricitysaved during an ozone control period by the project.
NO 

### = The amount of NO produced during the generation of electricity, measured in

x x

Date: Jun 26.2009 9:29:21AM EDT DIN: 20060123-IR-326060005FDA Page 66Indiana Register

Allowances

NO Rate x HeatOut Where: pounds per kilowatt hour. (K) Projects in section 2(3S)(,o,) 2(40)(A) ofthis rule based upon energy efficiency otherthan electricity savings shall be awarded allowances according to the following formula: Allowances 

### =(NO Rate x HeatOut I 0.8)/1 ,000,000/2,000 x

= The numberofallowances awarded to a project sponsor.



### = 0.17 Ib/MMBtu orthe actual NO emission rate, whichever is greater. x



### = The numberof British thermal units (Btu) of heat or steam effectively used for space, water, or industrial process heat during an ozone control penod bythe project. (L) Projects in section 2(3S)(H) 2(40)(H) ofthis rule using renewable energyto displace coal, natural gas, or oil combustion and reduce NO emissions shall be awarded allowances according to the following formula: Arfowances 

### =((0.17 x Fuel-lnput)/1,000,000)/2,000

Where: Allowances 

### = The number ofallowances awarded to a project sponsor. Fuel-Input 

### = The amount of heat input, in Btu, from the renewable energy. (M) Projects in section 2(3S)(8) 2(40)(8) of this rule that ciaim aliowances based upon highly efficient combined heat and powersystems for the predominant use ofa single end user, that meetthe thresholds specified in section 2(3S)(8) 2(40)(8) ofthis rule, that are large affected units as defined in section 2 ofthis rule, receive allowances based upon the net amount ofenergy generated and used during an ozone control period and the following formula: Allowances 

### = «(NO conventional

- NO CHP)/2,000) x 0.5 x x Allowances 

### = The numberofallowances awarded to a project sponsor. NOxconventional 

# = [(0.15 x 3,412 x kWG I0.34) + (0.17 x HeatOuti 0.8)]11 ,000,000

NOxCHP 

### = (Btuln x NOx Rate)/1,000,000
Where: kWG 

### =The numberofnet kilowatt hours of electricity generated during an ozone control period bythe project. HeatOut

### =The numberof British thermal units (Btu) of heat orsteam effectively used forspace, water, or industrial process heat during an ozone control period bythe project.
NO Rate = NO emitted during normal system operation bythe project, x x measured in pounds per million Btu offuel input.
Btuln 

### =The numberof British thermal units (Btu) offuel used to produce electricity, heat, orsteam during an ozone control period bythe project. (4) The department shall review, and reserve CAlR NO allowances pursuant to, each allowance allocation x request by Juiy 31 each year as follows: (A) Upon receipt ofthe NO allowance allocation request, the department shall make any necessary adjustments to the request'lo ensure that the numberofallowances specified in the request is consistent with the requirements of subdivision (3). (B) Ifthe energy efficiency and renewable energy allocation set-aside forthe control period forwhich NO allowances are requested has an amount of NO allowances greaterthan or equal to the number requested,

as adjusted underclause (A), the department shxall reserve the amount ofthe NO allowances requested, as adjusted underclause (A), to the energy efficiency and renewable energy project§. (C) Ifthe energy efficiency and renewable energy allocation set-aside for the ozone control period for which NO allowances are requested has an amount of NO allowances less than the number requested, as adjllsted underclause (A), butthe new unit set-asidexor hardship set-aside for large affected units is under-subscribed, the department shall reserve the amount of the NO allowances requested with the difference reserved from the new unit or hardship set-aside. x (D) Ifthe energy efficiency and renewable energy allocation set-aside for the ozone control period forwhich NO allowances are requested has an amount of NO allowances less than the number requested, as adjllsted underclause (A), and the new unit set-aSide' and hardship set-aside for large affected units are over-subscribed, the department shall reserve the allocation set-aside on a pro rata basis, except that allowances requested for projects under section 2(3S)(/\), 2(3S)(e), 2(3S)(9), 2(40)(A), 2(40)(C), 2(40)(0), and 2(3S)(H) 2(40)(H) ofthis rule shall be reserved first, reserved for projects under section 2(3S)(8) 2(40)(8) and 2(3S)(0) 2(40)(G) ofthis rule second, reserved for projects undersection 2(3S)(E) 2(40)(E) of this rule third, and reserved for projects undersection 2(3S)(F) 2(40)(F) ofthis rule fourth. (E) Any unreserved allowances shall be distributed as follows:

(i) Fifty percent (50%) ofthe unreserved allowances shall be retained bythe state to fund a grant program Where:

Dale: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR·326080005FDA Page 67Indiana Register
for energy efficiency and renewable energy projects. The grant program projects do not need to meetthe

one (1) tons of NO emissions for singularoraggregated projects undersubdivision (2). The unreserved NO allowances sh'all be deposited in a general allowance account established in accordance with this rule byfue Indiana office ofenergy and defense development in accordance with the ailowance allocation requirements ofthis rule, subjectto the following:

(AA) The Indiana office ofenergy and defense development shall deposit revenue from the sale of unreserved NO allowances in a dedicated general NO account established bytRese**F~les** this rule used exclusively to

### p~ovide matching grant funds for energy

### ~fficiency and renewable energy projects, including, but not limited to, the purchase and installation ofalternative energy systems and programs to support energy efficiency projects. (BB) The Indiana office ofenergy and defense development shall hold the unreserved NO allowances in

a general NO account until such time that project(s) are approved for grantfunding, at wh1ch time NO allowances st\'all be sold to provide cash dollars forthe grant funding. ' (CC) Revenue from the sale of unreserved NO allowances held bythe state of Indiana through the Indiana office ofenergy and defense developm'ent shall not revert to the state general fund, and shall only be used to provide matching grant funds forthe installation ofenergy efficiency and renewable energy projects as defined in this subsection. (DO) Effective November 1, 2009, and annually thereafter, the Indiana office ofenergy and defense development shall provide a report to the commissionerand the air pollution control board regarding the allowance transaction activity and the distribution and the balance ofthe matching grantfunds for energy efficiency and renewable energy projects during that period. At a minimum, the report shall contain the following:

(aa) The numberof NO, allowances currently heid in general NO, account(s) bythe Indiana office of energy and defense development. (bb) A summary oftransactions in the market, including the date(s) oftransactions, the numberof allowances transacted, and the distribution of proceeds from transactions (including brokerage fees). (cc) The distribution ofgrantfunding by recipient. (dd) Afull description oftype ofproject(s) funded. (ee) A summary ofthe benefits ofeach project. (EE) Ifat any time after November 1, 2009, the total numberof unreserved ozone season NO allowances held bythe Indiana office ofenergy and defense development is greaterthan five hundred (500) tons, fifty percent (50%) ofthe total amount of NO allowances shall be returned to the departmentfor redistribution to existing large affected units on a pro

### r~ta basis. 

### (i1) Fifty percent (50%) ofthe unreserved allowances shall be returned to existing large affected units on a pro rata basis. (5) Afterthe completion ofthe control period forwhich CAIR ozone season NO allowances had been reserved, the project sponsor shall submitthe results ofthe actual savings or

### g~neration by October 31 ofthat year. Allowances shall be awarded only afterverification of project implementation and certification of energy, emission, orelectricity savings, as appropriate. The department shall consult the Indiana office ofenergy and defense development concerning verification and certification. (6) The department shall allocate the appropriate amount of CAIR NO allowances based on the review ofthe submittal of actual savings or generation results under subdivision (5)"and notifythe CAIR NO designated representative that submitted the request and the U.S. EPA ofthe numberof NO allowances

### ~lIocated forthe controi period by March 31 ofeach year. Any person to whom the department all6cates NO allowances shall establish a general account undersection 9(b) ofthis rule. x



# m The department shall make available CAIR NO ozone season allowances from the hardship set-aside for large affected units under section 1(a)(2) ofthis rule. the amount of CAIR NO ozone season allowances in the set-aside shall equal one hundred fifty (150) tons in 2010 and thereafter. The

### ~epartment shall allocate CAIR NO

ozone season allowances as follows: ' (1) The CAIR NO designated representative shall submit a request by May 1 ofthe yearfor which CAIR NO

ozone season all8wances are needed that Includes the following: ' (A) A demonstration that compliance with this rule absent hardship allowances could pose an unacceptable risk eitherto the source's own operation or its associated industry. (B) A demonstration that the cost ofcompliance with the requirements in this rule will not be cost-effective without an allocation of hardship allowances. The owneroroperatorcan show that it meets this cost factor if the unit's average cost ofseasonal compliance with requirements In this rule will exceed two thousand four hundred dollars ($2.400) perton of NO reduced. Such a showing can be based on cost methodology assessments orengineering studies

### wh~ch are reliably indicative of NO compliance costs forthese entities, including data produced through the use ofthe U.S. EPA Air Pollution Control Cost Manual.

Date: Jun 26.2009 9:29:21AM EDT DIN: 20080123·IR·326080005FDA Page 68Indiana Register (2) Ifthe hardship set-aside forthe control period for which NO ozone season allowances are requested has

an amount of NO allowances less than the number requested:but the energy efficiencyand renewable energy aliocationXset-aside or new unit set-aside for large affected units is under-subscribed, the department shall allocate the amount ofthe NO ozone season allowances requested with the difference allocated from the energy efficiency and

### renewabl~ energy allocation or new unitset-aside. (3) Ifthe hardship set-aside forthe control period for which NO ozone season allowances are requested has

an amount of NO allowances less than the number requested

### ~nd the energy efficiency and renewable energy set-aside

### ~r new unit set-aside for large affected units is over-subscribed, the department shall allocate NO allowances from the hardship set-aside on a pro rata basis. (4) Any unallocated allowances shall be distributed to existing large affected units on a pro rata basis. (5) Anytransferof allowances underthis subsection shall be submitted to U.S. EPA by July 31 of each year.
'These documents are incorporated by reference. Copies may be obtained from the Government Printing Office, 732 North Capitol Street NW, Washington, D.C. 20401 orare available for review and copying atthe Indiana Department of Environmentai Management, Office ofAir Quality, Indiana Government Center-North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana46204. (AirPollution ControlBoard; 

### 326 lAC

### 24-3-8; filedJan 

### 26, 2007, 10:25a.m.: 20070221-IR-326050117FRAI

SECTION 14. 326 lAC 24-3-9 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-3-9 CAIR NO ozone season allowance tracking system x Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-15; IC 13-17

Sec. 9. (a) Except as provided in section 12(f)(7) ofthis rule, upon receipt ofa complete certificate of representation undersection 6(h) ofthis rule, the U.S. EPAwill establish a compliance account forthe CAIR NO

ozone season source forwhich the certificate ofrepresentation was submitted unless the source already has a x compliance account.

(b) Any person may applyto open a general accountforthe purpose of holding and transferring CAIR NO

ozone season allowances. An application for a general account may designate one (1) and only one (1) CAII:i' authorized account representative and one (1) and only one (1) alternate CAIR authorized account representative who may act on behalfofthe CAIR authorized account representative. The agreement by which the alternate CAiR authorized account representative is selected shall include a procedure for authorizing the alternate CAIR authorized account representative to act in lieu ofthe CAIR authorized account representative. The establishment ofthe general account shall be subjectto the following: (1) A complete application for a general account shall be submitted to the U.S. EPA and shall include the following elements in a format prescribed by the U.S. EPA: (A) The following information concerning the CAIR authorized account representative and any alternate CAIR authorized account representative:

(i) Name. 

### (Ii) Mailing address. (iii) E-mail address, ifany. (iv) Telephone number. (v) Facsimile transmission number, ifany. (8) Organization name and type oforganization, ifapplicable. (C) A list ofall persons subjectto a binding agreementforthe CAIR authorized account representative and any alternate CAIR authorized account representative to represent theirownership interestwith respect to the CAIR NO ozone season allowances held in the general account. (D) The folloJiing certification statement by the CAIR authorized account representative and any alternate CAIR authorized account representative: "I certify that Iwas selected as the CAIR authorized account representative orthe alternate CAIR authorized account representative, as applicable, byan agreement that is binding on all persons who have an ownership interest with respect to CAIR NO ozone season allowances held in the general account. I certifythat I have all the necessary auth6rity to carry out my duties and responsibilities underthe CAIR NO ozone season trading prograrn on behalf ofsuch persons and that each such person shall be fully bound by my representations, actions, inactions, orsubmissions and by any orderor decision issued to me by the U.S. EPA or a court regarding the general account.". (E) The signature ofthe CAIR authorized account representative and any alternate CAIR authorized

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 69Indiana Register

account representative and the dates signed. (F) Unless otherwise required bythe department orthe U.S. EPA, documents ofagreement referred to in the application for a general account shall not be submitted to the department orthe U.S. EPA. Neitherthe department northe U.S. EPA shall be underany obligation to review orevaluate the sufficiency ofsuch documents, ifsubmitted. (2) Upon receipt bythe U.S. EPAof acomplete application for a general account undersubdivision (1), the following shall apply: (A) The U.S. EPAwill establish a general account forthe person or persons for whom the application is submitted. (B) The CAIR authorized account representative and any alternate CAIR authorized account representative forthe general account shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each person who has an ownership interestwith respect to CAIR NO ozone
season allowances held in the general account in all matters pertaining to the CAIR NO ozonexseason trading program, notwithstanding any agreement between the CAIR authorized account'representative or any alternate CAIR authorized account representative and such person. Any such person shall be bound by any orderordecision issued to the CAIR authorized account representative orany alternate CAIR authorized account representative by the U.S. EPA ora court regarding the general account. (C) Any representation, action, inaction, orsubmission by any alternate CAIR authorized account representative shall be deemed to be a representation, action, inaction, or submission bythe CAIR authorized account representative. (0) Each submission concerning the general account shall be submitted, signed, and certified bythe CAIR authorized account representative orany alternate CAIR authorized account representative forthe persons having an ownership interestwith respect to CAIR NO ozone season allowances held in the general account. Each such submission shall include the

### follo~ing certification statement by the CAIR authorized account representative orany alternate CAIR authorized account representative: "I am authorized to make this submission on behalfofthe persons having an ownership interestwith respect tolhe CAIR NO ozone
season allowances held in the general account. I certify underpenalty of law that I have personally' examined, and am familiarwith, the statements and information submitted in this document and all its attachments. Based on my inquiryofthose individuals with primary responsibility forobtaining the information, I certifythat the statements and information are to the bestofmy knowledge and belieftrue, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information oromitting required statements and information, including the possibility offine or imprisonment."

. (E) The U.S. EPAwill accept oract on a submission concerning the general account only ifthe submission has been made, signed, and certified in accordance with clause (0). (3) The following shall applyto changing the CAIR authorized account representative oraltemate CAIR authorized account representative, and changes in persons with ownership interest: (A) The CAIR authorized account representative fora general account may be changed at anytime upon receipt bythe U.S. EPAofa superseding complete application for a general account undersubsection (b)(1). Notwithstanding any such change, all representations, actions, inactions, and submissions bythe previous CAIR authorized account representative before the time and date when the U.S. EPA receives the superseding application for a general account shall be binding on the new CAIR authorized account representative and the persons with an ownership interestwith respect to the CAIR NO ozone season allowances in the general account. x (B) The alternate CAIR authorized account representative for a general account may be changed at any time upon receipt bythe U.S. EPA ofa superseding complete application for a general account under subsection (b)(1). Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous alternate CAIR authorized account representative before the time and date when the U.S. EPA receives the superseding application for a general account shall be binding on the new alternate CAIR authorized account representative and the persons with an ownership interestwith respect to the CAIR NO ozone season allowances in the general account. (C) In the eventXa person having an ownership interestwith respect to CAIR NO ozone season allowances in the general account is not included in the list ofsuch persons in the

### applicatio~ fora general account, such person shall be deemed to be subjectto and bound by the application fora general account, the representation, actions, inactiOnS, and submissions ofthe CAIR authorized account representative and any alternate CAIR authorized account representative ofthe account, and the decisions and orders ofthe U.S. EPAora court, as ifthe person were included in such list. (0) Within thirty (30) days following any change in the persons having an ownership interestwith respect to CAIR NO ozone season allowances in the general account, including the addition ofa new person, the CAIR autAorized account representative orany alternate CAIR authorized account representative shall submit a revision to the application for a general account amending the list ofpersons having an ownership

Date: Jun 2S,2009 9:29:21AM EDT DtN: 20080123·tR·326080005FDA Page 70Indiana Register
interestwith respect to the CAIR NO ozone season allowances in the general accountto include the change. x (4) Once a complete application fora general account undersubdivision (1) has been submitted and received, the U.S. EPAwill rely on the application unless and until a superseding complete application for a general account undersubdivision (1) is received bythe U.S. EPA. (5) Except as provided in subdivision (3)(A) or (3)(B), no objection orother communication submitted to the U.S. EPA concerning the authorization, orany representation, action, inaction, orsubmission ofthe CAIR authorized account representative orany alternate CAIR authorized account representative for a general account shall affect any representation, action, inaction, orsubmission ofthe CAIR authorized account representative orany alternate CAIR authorized account representative orthe finality ofany decision ororder by the U.S. EPA underthe CAIR NO ozone season trading program. (6) The U.S. EPAwill not adjudicate

### ~ny private legal dispute concerning the authorization orany representation, action, inaction, orsubmission ofthe CAIR authorized account representative orany alternative CAIR authorized account representative fora general account, including private legal disputes concerning the proceeds of CAIR NO ozone season allowance transfers. (7) The following shall applyto delega1ion bythe CAIR authorized account representative and alternate CAIR authorized account representative: (A) A CAIR authorized account representative may delegate, to one (1) or more natural persons, his or her authority to make an electronic submission to the U.S. EPA provided for or required undersections 9 and 

### 10 ofthis rule. (B) An alternate CAIR authorized account representative may delegate, to one (1) or more natural persons, his or herauthority to make an electronic submission to the U.S. EPA provided for or required under sections 9 and 

### 10 ofthis rule. (C) In orderto delegate authorityto make an electronic submission to the U.S. EPA in accordance with clause (A) or (B), the CAIR authorized account representative orthe alternate CAIR authorized account representative, as appropriate, must submit to the U.S. EPA a notice ofdelegation, in a format prescribed bythe U.S. EPA, that includes the following elements:

(i) The name, address, e-mail address, telephone number, and facsimile transmission number, ifany, of the following:

(AA) The CAIR**a~thqrized** account representative oralternate CAIR authorized account representative. (BB) Each natural person, referred to as an "agent". (ii) Foreach such natural person, a list ofthe type ortypes ofelectronic submissions underclause (A) or (B) for which authority is delegated to him or her. (iii) The following certification statements by such CAIR authorized account representative oralternate CAIR authorized account representative:

(AA) "I agree that any electronic submission to the U.S. EPA that is by an agent identified in this notice of delegation and of atype listed for such agent in this notice of delegation and that is made when I am a CAIR authorized account representative oralternate CAIR authorized representative, as appropriate, and before this notice ofdelegation is superseded by another notice ofdelegation under326 lAC 24-3- 1l.(b)(7)(0) shall be deemed to be an electronic submission by me.". (88) "Until this notice ofdelegation is superseded by another notice of delegation under 326 lAC 24-3- 1l.(b)(7)(0), I agree to maintain an e-mail account and to notify the U.S. EPA immediately of any change in my e-mail address unless all delegation of authority by me under326 lAC 24-3-9(b)(7) is terminated.". (0) A notice ofdelegation submitted underclause (C) shall be effective, with regard to the CAIR authorized account representative oralternate CAIR authorized account representative identified in such notice, upon receipt of such notice by the U.S. EPA and until receipt bythe U.S. EPA of a superseding notice of delegation submitted by such CAIR authorized account representative oralternate CAIR authorized account representative, as appropriate. The superseding notice ofdelegation may replace any previously identified agent, add a new agent, or eliminate entirely any delegation of authority. (E) Any electronic submission covered by the certification in clause (C)(iii)(AA) and made in accordance with

a notice ofdelegation effective underclause (0) shall be deemed to be an electronic submission bythe CAIR authorized account representative oralternate CAIR authorized account representative submitting such notice ofdelegation.

(c) The U.S. EPAwill assign a unique identifying numberto each account established undersubsection (a) or (b)

(d) Following the establishment ofa CAIR NO ozone season allowance tracking system account, all submissions to the U.S. EPA pertaining to the adount, including, but not limited to, submissions concerning the deduction ortransfer of CAIR NO ozone season allowances in the account, shall be made only bythe CAIR x

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authorized account representative forthe account.

(e) By September30,2007, the U.S. EPAwill record in the CAIR NO ozone season source's compliance accountthe CAIR NO ozone season allowances allocated forthe CAIR

## 'No ozone season units atthe source,
as submitted bythe

### d~partment in accordance with section 8(b)(1 )(A) ofthisxrule, forthe control periods in 2010, 2011,2012,2013, and 2014.

(f) By December 1, 2008, and December 1 every six (6) years thereafter, the U.S. EPAwill record in the CAIR NO ozone season source's compliance accountthe CAIR NO ozone season allowances allocated forthe CAIR NOxozone season units atthe source, as submitted by the department in accordance with section 8(b)(1)(B) of thisxrule, forthe control periods seven (7), eight (8), nine (9), ten (10), eleven (11), and twelve (12) years afterthe year ofthe allowance allocation.

(g) By September 1, 2009, and September 1 ofeach yearthereafter, the U.S. EPAwill record in the CAIR NO

ozone season source's compliance accountthe CAIR NO ozone season allowances allocated forthe CAIR NO x
ozone season units atthe source, as submitted by the department in accordance with section 8(b)(1 )(C) ofthis x rule, forthe control period in the year ofthe applicable deadline for recordation underthis subsection.

(h) When recording the allocation ofCAIR NO ozone season allowances for a CAIR NO ozone season unit in a compliance account, the U.S. EPAwill assigrfeach CAIR NO ozone season allowancex a unique identification numberthat shall include digits identifying the year

# 01 the control period forwhich the CAIR NO

ozone season allowance is allocated. x

(i) The CAIR NO ozone season allowances are available to be deducted for compliance with a source's CAIR NOxozone season

### ~missions limitation for acontrol period in a given calendaryearonly ifthe CAIR NOxozone
season allowances: (1) were allocated forthe control period in the yearora prioryear; and (2) are held in the compliance account as ofthe allowance transfer deadline forthe control period orare transferred intothe compliance account by a CAIR NO ozone season allowance transfercorrectly submitted for recordation undersection 1O(a) through 1O(d) ofthig rule bythe allowance transferdeadline forthe control period.



# m The following shall applyto deductions for purposes ofcompliance with a source's emissions limitation: (1) Following the recordation, in accordance with section 1O(b) and 1O(c) ofthis rule, ofCAIR NO ozone
season allowance transfers submitted for recordation in a source's compliance account bythe

### all~wance transferdeadline for a control period, the U.S. EPAwill deduct from the compliance account CAIR NO ozone
season allowances available undersubsection (i) in orderto determine whetherthe source meets the CAIR NO ozone season emissions limitation forthe control period in one (1) ofthe following ways:



### (A) Until the amount ofCAIR NO ozone season allowances deducted equals the numberoftons oftotal nitrogen oxides emissions, deterfuined in accordance with section 11 ofthis rule, from all CAIR NO ozone
season units atthe source forthe control period. x (B) Ifthere are insufficient CAIR NO ozone season allowances to complete the deductions in clause (A), until no more CAIR NO ozone seas'bn allowances available under subsection (i) remain in the compliance account. x (2) The CAIR authorized account representative for a source's compliance account may request that specific CAIR NO ozone season allowances, identified by serial number, in the compliance account be deducted for emissiontorexcess emissions for acontrol period in accordance with subdivision (1) or (4). Such request shall be submitted to the U.S. EPA by the allowance transferdeadline forthe control period and include, in aformat prescribed bythe U.S. EPA, the identification ofthe CAIR NO ozone season source and the appropriate serial numbers. x (3) The U.S. EPAwill deduct CAIR NO ozone season allowances under subdivision (1) or (4) 

### ef-\61 from the source's compliance account, in the ab%ence ofan identification or in the case ofa partial identification of CAIR NO ozone season allowances byserial number under subdivision (2), on a first-in, first-out (FIFO) accounting basis in the following order: (A) Any CAIR NO ozone season allowances that were allocated to the units at the source, in the orderof recordation. x (B) Any CAIR NO ozone season allowances that were allocated to any entity and transferred and recorded in the compliancexaccount under section 10 ofthis rule, in the orderof recordation....

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR·326080005FDA Page 72Indiana Register (4) After making the deductions forcompiiance undersubdivision (1) for a control period in a calendaryear in which the CAIR NO ozone season source has excess emissions, the U.S. EPAwill deductfrom the source's compiiance accounfan amount of CAIR NO ozone season allowances, allocated forthe control period in the immediatelyfollowing calendaryear, equal

### t~ three (3) times the numberoftons ofthe source's excess emissions. (5) Any allowance deduction required undersubdivision (4) shall not affectthe liability ofthe owners and operators ofthe CAIR NO ozone season source orthe CAIR NO ozone season units atthe source for any fine, penalty, orassessme'ht, ortheirobiigation to complywith anyother remedy, forthe same violations, as ordered underthe Clean AirAct orappiicable state law. (6) The U.S. EPAwill record in the appropriate compliance account all deductions from such an account under**s~llE!i,'isieA** subdivisions (1), (4), and (5) and section 12 ofthis rule. (7) The U.S. EPA may review and conduct independent audits concerning any submission underthe CAIR NOxozone season trading program and make appropriate adjustments ofthe information in the submissions. (8) The U.S. EPA maydeduct CAIR NO ozone season allowances from ortransfer CAIR NO ozone season allowances to a source's compliance ac60unt based on the information in the submissions, aSXadjusted under subdivision (7), and record such deductions and transfers.

(k) CAIR NO ozone season allowances may be banked forfuture use ortransfer in a compliance account or a general accoun(Any CAIR NO ozone season allowance that is held in a compliance account ora general account shall remain in such ac'tount unless and until the CAIR NO ozone season allowance is deducted or transferred undersubsection (i), 

### 0), or (I) orsection 10 or 12 ofthis

### ~ule.
(I) The U.S. EPA may, at its sole discretion and on its own motion, correct any error in any CAIR NO ozone
season allowance tracking system account. Within ten (10) business days of making such correction,

### th~ U.S. EPAwill notify the CAIR authorized account representative forthe account.

(m) The CAIR authorized account representative ofa general account may submit to the U.S. EPA a request to close the account, which shall include acorrectly submitted allowance transfer undersection 1O(a) through 1O(d) ofthis rule for any CAIR NO ozone season allowances in the accountto one (1) or more otherCAIR NO

ozone season allowance tracking

### ~ystem accounts. x

(n) ifa general account has no allowance transfers in orout ofthe account for atwelve (12) month period or longerand does not contain any CAIR NO ozone season allowances, the U.S. EPA may notify the CAIR authorized account representative forthe §ccountthat the accountwill be closed following twenty (20) business days afterthe notice is sent. The account will be closed afterthe twenty (20) day period unless, before the end of the twenty (20) day period, the U.S. EPA receives a correctly submitted transferof CAIR NO ozone season allowances into the account undersection 10(a) through 10(d) ofthis rule ora statement subXmitted bythe CAIR authorized account representative demonstrating to the satisfaction ofthe U.S. EPA good cause as to whythe account should not be closed. (AirPollution ControlBoard; 

### 326 lAC

### 24-3-9; filedJan 

### 26, 2007, 10:25a.m.: 20070221-fR-326050117FRA)

SECTION 15. 326 lAC 24-3-12 IS AMENDED TO READ AS FOLLOWS:

326 lAC 24-3-12 CAIR NO ozone season opt-in units
x Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-11 Affected: IC 13-15; IC 13-17

Sec. 12. (a) A CAIR NO ozone season opt-in unit must be a unitthat meets the following requirements: (1) Is located in Indiana." (2) Is not a CAIR NO ozone season unit under section 1 ofthis rule and is not covered by a retired unit exemption underseeton 3ofthis rule that.is in effect. (3) Is not covered by a retired unit exemption under40 CFR 72.8' that is in effect. (4) Has or is required orqualified to have a Part 70 operating permit orotherfederally enforceable permit. (5) Vents all ofits NO emissions to a stack and can meetthe monitoring, record keeping, and reporting requirements ofsecti6n 11 ofthis rule.

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 73Indiana Register
(b) Except as otherwise provided sections 1, 2, 4 through 7, and 9 through 11 ofthis rule, a CAIR NO ozone
season opt-in unitshall be treated as a CAIR NO ozone season unitfor purposes ofapplying sections ofthis**~e.** 

### "

(c) Solely for purposes ofapplying, as provided in this section, the requirements of section 11 ofthis rule to a unitforwhich a CAIR opt-in pennit application is submitted and notwithdrawn and a CAIR opt-in permit is not yet issued ordenied underthis section, such unit shall be treated as a CAIR NO ozone season unit before issuance ofa CAIR opt-in permitfor such unit. "

(d) Any CAIR NO opt-in unit, and any unit for which a CAIR opt-in permit application is submitted and not withdrawn and a

### CAI~ opt-in permit is not yet issued ordenied underthis section, located atthe same source as
one (1) or more CAIR NO ozone season units shall have the same CAIR designated representative and alternate CAIR designated represeAtative as such CAIR NO ozone season units.



## "
(e) The CAIR designated representative ofa unit meeting the requirements for a CAIR NO ozone season opt-in unit in subsection (a) may apply for an initial CAIR opt-in permit at any time, except as provided under subsection (h)(8) and (h)(9), and, in orderto apply, must submitthe following: (1) A complete CAIR permit application undersection 7(c) ofthis rule. (2) A certification, in a format specified by the department, that the unit:

(A) is not a CAIR NO ozone season unit undersection 1 ofthis rule and is not covered by a retired unit exemption undersectton 3 ofthis rule that is in effect; (6) is not covered by a retired unit exemption under40 CFR 72.8* that is in effect; (C) vents all ofits NO emissions to a stack; and (D) has documented

### ~eat inputfor more than eight hundred seventy-six (876) hours during the six (6) months immediately preceding submission ofthe CAIR permit application undersection 7(c) ofthis rule. (3) A monitoring plan in accordance with section 11 ofthis ruie. (4) A complete certificate of representation under section 6(h) ofthis rule consistent with subsection (d), if no CAIR designated representative has been previously designated forthe source that includes the unit. (5) A statement, in a format specified by the department, whetherthe CAIR designated representative requests thatthe unit be allocated CAIR NO ozone season allowances undersubsection 0)(3) or 0)(4), subject to the conditions in subsections (f)(10) and (h)(8). Ifallocation undersubsection 0)(4) is requested, this statement shall include a statementthat the owners and operators ofthe unit intend to repowerthe unit before January 1, 2015, and that theywill provide, upon request, documentation demonstrating such intent. The CAIR designated representative ofa CAIR NO ozone season opt-in unit shall submit a complete CAIR permit application undersection 7(c) ofthis rule to 

### tenew the CAIR NO ozone season opt-in unit pennit in accordance with the department's regulations for Part 70 operating per!\,its, orthe department's regulations for otherfederally enforceable permits ifapplicable, addressing permit renewal. Unless the department issues a notification of acceptance ofwithdrawal ofthe CAIR NO ozone season opt-in unitfrom the CAIR NO ozone
season trading program in accordance with subsection 

## (h) orthe unit becomes a CAIR NO ozone se"ason unit under section 1 ofthis rule, the CAIR NO ozone season opt-in unit shall remain subjecttothe requirements for a CAIR NO ozone season opt-in unit, ever\' ifthe CAIR designated representative forthe CAIR NO ozone season opt-in unitfails to submit a CAIR permit application that is required for renewal ofthe CAIR opt-inpermit.



### (I) The department shall issue ordeny a CAIR opt-in permitfor a unitfor which an initial application fora CAIR opt-in pennit undersubsection (e) is submitted in accordance with the following: (1) The department and the U.S. EPAwill determine, on an interim basis, the sufficiency ofthe monitoring plan accompanying the initial application for a CAIR opt-in permit undersubsection (e). A monitoring plan is sufficient, for purposes of interim review, ifthe pian appears to contain information demonstrating that the NO emissions rate and heat input ofthe unit and all otherapplicable parameters are monitored and reported in " accordance with section 11 ofthis rule. A determination of sufficiency shall not be construed as acceptance or approval ofthe monitoring plan. (2) Ifthe department and the U.S. EPA determine that the monitoring plan is sufficient undersubdivision (1), the owneroroperator shall monitorand report the NO emissions rate and the heat input ofthe unit and all otherapplicable parameters, in accordance with sectiJn 11 ofthis rule, starting on the date ofcertification of the appropriate monitoring systems undersection 11 ofthis rule and continuing until a CAIR opt-in permit is denied undersubdivision (8) or, ifa CAIR opt-in permit is issued, the date and time when the unit is withdrawn from the CAIR NO ozone season trading program in accordance with subsection (h). (3) The monitoring"and reporting under subdivision (2) shall include the entire control period immediately before the date on which the unit enters the CAIR NO ozone season trading program undersubdivision (9), 

# "

. Dale: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 74Indiana Register during which period monitoring system availability must not be less than ninety percent (90%) under section 11 ofthis rule and the unit must be in full compliance with any applicable state orfederal emissions or emissions-related requirements. (4) To the extentthe NO emissions rate and the heat input ofthe unit are monitored and reported in accerdance with sectionx 11 ofthis rule for one (1) or more control periods, in addition to the control period undersubdivision (3), during which control periods monitoring system availability is not less than ninety percent (90%) undersection 11 ofthis rule and the unit is in full compliance with any applicable state or federal emissions oremissions-related requirements and which control periods begin not more than three (3) years before the unit enters the CAIR NO ozone season trading program undersubdivision (9), such information shall be used as provided in s'Lbdivisions (5) and (6). (5) The unit's baseline heat input shall equal one (1) ofthe following:

(A) Ifthe unit's NO emissions rate and heat input are monitored and reported for only one (1) control period, in accordah'ce with subdivisions (2) and (3), the unit's total heat input, in million British thermal units (MMBtu), forthe centrol period. (B) Ifthe unit's NO emissions rate and heat input are monitored and reported for more than one (1) control period, in accordah'ce with subdivisions (2) through (4), the average ofthe amounts ofthe unit's total heat input, in million British thermal units (MMBtu), forthe control periods undersubdivisions (3) and (4). (6) The unit's baseline NO emission rate shall equal one (1) ofthe following:

(A) Ifthe unit's NO

### emi~sions rate and heat input are monitored and reported for only one (1) control period, in accordah'ce with subdivisions (2) and (3), the unit's NO emissions rate, in pounds per million British thermal units (lb/MMBtu), forthe control period. x (B) Ifthe unit's NO emissions rate and heat input are monitored and reported for more than one (1) centrol period, in accordah'ce with subdivisions (2) through (4), and the unitdoes not have add-on NO emission controls during any such control periods, the average ofthe amounts ofthe unit's NO emissio\s's rate, in pounds per million British thermal units (lb/MMBtu), forthe control periods undersubclivisions (3) and (4). (C) Ifthe unit's NO emissions rate and heat input are monitored and reported for more than one (1) control period, in accordah'ce with subdivisions (2) through (4), and the unit has add-on NO emission controls during anysuch control periods, the average ofthe amounts ofthe unit's NO emiss10ns rate, in pounds per million British thermal units (lb/MMBtu), for such control periods during whichXthe unit has add-on NO emission controls. x (7) Aftercalculating the baseline heat input and the baseline NO emissions rate forthe unit under subdivisions (5) and (6) and ifthe departmentdetermines that

### th~ CAIR designated representative shows that the unit meets the requirements for a CAIR NO ozone season opt-in unit in subsection (a) and meets the elements certified In subsection 

### (e)(2), the dep§rtmentshall issue a CAIR opt-in permit. The departmentshall provide a copy ofthe CAIR opt-in permitto the U.S. EPA, who will then establish a compliance accountforthe

source that includes the CAIR NO ozone season opt-in unit unless the source already has a compliance account. x (8) Notwithstanding subdivisions (1) through (7), ifat anytime before issuance ofa CAIR opt-in permit forthe unit, the departmentdetermines that the CAIR designated representative fails to showthat the unit meets the requirements for a CAIR NO ozone season opt-in unit in subsection (a) or meets the elements certified in subsection 

### (e)(2), the departfnent shall issue a denial of aCAIR NO ozone season opt-in permitforthe unit. (9) A unitforwhich an initial CAIR opt-in permit is issued bythe

### dep~rtment shall become a CAIR NO ozone
season opt-in unit, and a CAIR NO ozone season unit, as ofthe laterof May 1, 2009, or May 1 oftheXfirst control period during which such CAIR opt-in permit is issued. (10) Ifthe CAIR designated representative requests, and the department issues a CAIR opt-in permit providing for, allocation to a CAIR NO ozone season opt-in unit of CAIR NO ozone season allowances under subsection 0)(4) and such

### u~it is repowered after its date ofentry iAtothe CAIR NO ozone season trading program undersubdivision (9), the repowered unit shall be treated as a CAIR NO 6zone season opt-in unit replacing the original CAIR NO ozone season opt-in unit, as ofthe date ofstart-uXp ofthe repowered unit's combustion chamber. Notwithstanding subdivisions (5) and (6), as ofthe date of start-up, the repowered unit shall be deemed to have the same date ofcommencement ofoperation, date ofcommencement of commercial operation, baseline heat input, and baseline NO ozone season emission rate as the original CAIR NO ozone season opt-in unit, and the original CAIR NO oz'bne season opt-in unit shall no longer be treated

as § CAIR NO ozone season opt-in unit ora CAIR NO 'Ozone season unit. x x
(g) The following shall applyto the content ofeach CAIR opt-in permit: (1) Each opt-in permit shall contain the following: (A) All elements required for a complete CAIR permit application under section 7(c) ofthis rule. (B) The certification in subsection (e)(2). (C) The unit's baseline heat input undersubsection (f)(5).

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 75Indiana Register (D) The unit's baseline NO ozone season emission rate undersubsection (f)(6). (E) A statementwhether

### th~ unit is to be allocated CAIR NO ozone season allowances undersubsection (j)(3) or (j)(4), subject to the conditions in subsections (f)(10)"and (h)(8). (F) A statementthat the unit maywithdraw from the CAIR NO ozone season trading program only in accordance with subsection (h). x (G) A statementthat the unit is subjectto, and the owners and operators ofthe unit must comply with the requirements ofsubsection (i). (2) Each CAIR opt-in permit is deemed to incorporate automaticallythe definitions ofterms undersection 2 of this rule and, upon recordation bythe U.S. EPA underthis section and sections 9 and 10 ofthis rule, every allocation, transfer, ordeduction ofCAIR NO ozone season allowances to orfrom the compliance account of the source that includes a CAIR NO ozone s"eason opt-in unit covered bythe CAIR opt-in permit. (3) The CAIR opt-in permit shall be (ncluded, in a format prescribed bythe department, in the CAIR permitfor the source where the CAIR NO ozone season opt-in unit is located and in a Part 70 operating permit or FESOP. x

(h) The following requirements must be satisfied in orderto withdraw an opt-in unitfrom the CAIR NO trading x program: (1) Except as provided undersubdivision (8), a CAIR NO ozone season opt-in unit may withdraw from the CAIR NO ozone season trading program, but only ifthe

### ~epartment issues a notification to the CAIR designate"d representative ofthe CAIR NO ozone season opt-in unit ofthe acceptance ofthe withdrawal of the CAIR NO ozone season opt-in unit in

### ~ccordance with subdivision 

### (6). (2) In orderto"withdraw a CAIR NO ozone seaSon opt-in unit from the CAIR NO ozone season trading program, the CAIR designated

### repr~sentative ofthe CAIR NO ozone season opl-in unit shall submitto the department a request to withdraw effective as of midnight of S'l.ptember 30 of a specified calendaryear, which date must be at leastfour (4) years after September30 ofthe year ofentry into the CAIR NO ozone season trading program under subsection (f)(9). The request must be submitted not laterthan ninetyt90) days before the requested effective date ofwithdrawal. (3) Before a CAIR NO ozone season opt-in unit covered by a request undersubdivision (1) may withdraw from the CAIR NO oz'bne season trading program and the CAIR opt-in permit may be terminated under subdivision (7), thJfollowing conditions must be met: (A) Forthe control period ending on the date on which the withdrawal is to be effective, the source that includes the CAIR NO ozone season opt-in unit must meetthe requirement to hold CAIR NO ozone
season allowances

### un~er section 4(c) ofthis rule and cannot have any excess emissions. x (B) Afterthe requirement forwithdrawal underclause (A) is met, the U.S. EPAwill deductfrom the compliance account ofthe source that includes the CAIR NO ozone season opt-in unit CAIR NO ozone
season allowances equal in amountto and allocated forthe s"ame ora prior control period as any"CAIR NO

. ozone season allowances allocated to the CAIR NO ozone season opt-in unit under section 12(j) ofthis x rule for any control period forwhich the withdrawal

### i~ to be effective. If there are no remaining CAIR NO

ozone season units atthe source, the U.S. EPAwill close the compliance account, and the owners andx operators ofthe CAIR NO ozone season opt-in unit maysubmit a CAIR NO ozone season allowance transferfor any remaining"cAIR NO ozone season allowances to another CAIR NO ozone season allowance tracking system in accord'ance with section 10 ofthis rule. x (4) Afterthe requirements forwithdrawal undersubdivisions (2) and (3) are met, including deduction ofthe full amount ofCAIR NO ozone season allowances required, the department shall issue a notification to the CAIR designated represen1ative ofthe CAIR NO ozone season opt-in unit ofthe acceptance ofthe withdrawal of the CAIR NO ozone season opt-in unit asxof midnight on September 30 ofthe calendar yearfor which the withdrawal

### w~s requested. (5) Ifthe requirements for withdrawal under subdivisions (2) and (3) are not met, the department shall issue a notification to the CAIR designated representative ofthe CAIR NO ozone season opt-in unitthat the CAIR NOxozone season opt-in unit's request to withdraw is denied. Such CAIR NO ozone season opt-in unit shall continue to be a CAIR NO ozone season opt-in unit. x (6) Afterthe department

### is~ues a notification undersubdivision (4) that the requirements forwithdrawal have been met, the department shall revise the CAIR permit covering the CAIR NO ozone season opt-in unit to terminate the CAIR opt-in permitfor such unit as ofthe effective date specified undersubdivision (4). The unit shall continue to be a CAIR NO ozone season opt-in unit until the effective date ofthe termination and shall comply with all requirements un"derthe CAIR NO ozone season trading program concerning any control periods forwhich the unit is a CAIR NO ozone

### s~ason opt-in unit, even ifsuch requirements arise or must be complied with afterthe withdrawal takes"effect. (7) Ifthe department denies the CAIR NO ozone season opt-in unit's request to withdraw, the CAIR designated representative may submit an6ther request to withdraw in accordance with subdivisions (2) and

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR-326080005FDA Page 76Indiana Register (3). (8) Notwithstanding subdivisions (1) through (7), a CAIR NO ozone season opt-in unit shall not be eligible to withdrawfrom the CAIR NO ozone season trading

### program~f the CAIR designated representative ofthe CAIR NO ozone season opt-in

### un~t requests, and the department issues a CAIR NO ozone season opt-in permit proGiding for, allocation to the CAIR NO ozone season opt-in unit ofCAIR NOxozone season allowances undersubsection (j)(4). x x (9) Once a CAIR NO ozone season opt-in unitwithdraws from the CAIR NO ozone season trading program and its CAIR opt-in

### p~rmit is terminated underthis section, the CAIR

### designa~ed representative may not submit another application fora CAIR opt-in permit under subsection (e) for such CAIR NO ozone season opt-in unit before the date that is four (4) years afterthe date on which the withdrawal becai!ne effective. Such

new application for a CAIR opt-in permit shall be treated as an initial application for a CAIR opt-in permit under subsection 

### (I).

(i) When a CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit undersection 

### 1 of this rule, then the CAIR

### ~esignated representative shall notify in, writing:the department and the U.S. EPA of such change in the CAIR NO ozone season opt-in unit's regulatory status, within thirty (30) days ofsuch change. Ifthere is a change in the reg'Llatory status, the department and the U.S. EPAwill take the following actions concerning the CAIR NO opt-in source: (1) When the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit undersection 1 of this rule, the

### departmen~ shall revise the CAIR NO ozone season opt-iA unit's CAIR opt-in permit to meetthe requirements ofa CAIR permit undersection 7(d)

### ~nd (7)(e) ofthis rule, and remove the CAIR opt-in permit provisions, as ofthe date on which the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone
season unit undersection 

### 1 ofthis rule. x x (2) The U.S. EPAwill deductfrom the compliance account ofthe source that includes the CAIR NO ozone
season opt-in unitthat becomes a CAIR NO ozone season unit undersection 

### 1 ofthis rule, CAIR NO ozone
season allowances equal in amount to, and

### ~lIocated for, the same or a priorcontrol period as

### follows~

(A) Any CAIR NO ozone season allowances allocated to the CAIR NO ozone season opt-in unit under subsection (j)(4) for any control period afterthe date on which the CAIR'NO ozone season opt-in unit becomes a CAIR NO ozone season unit undersection 

### 1 ofthis rule. x 

### (B) Ifthe date on

### whi~h the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit undersection 1 ofthis rule is not September 30, the CAIR NO ozone season

### allowa~ces allocated to the CAIR NO ozone season opt-in unit under section 12(j) ofthis

### ~ule for the control period that includes the date on w'hich the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit under section 

### 1 ofthis rule, multipffed by the ratio ofthe numberofdays, in the con"trol period, starting with the date on which the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit under section 

### 1 ofthis rule divide6bythe total numberofdays in the control period' and rounded to the nearest whole allowance as appropriate. (3) The CAIR designated representative shall ensure that the compliance account ofthe source that includes the CAIR NO ozone season opt-in unit that becomes a CAIR NO ozone season unit undersection 

### 1 ofthis rule containsthe CAIR NO ozone season allowances necessaryfor completion ofthe deduction under subdivision (2). x (4) Forevery control period afterthe date on which the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit under section 

### 1 ofthis rule, the CAIR No' ozone season opt-in unit shall be allocated CAlR NO ozone season allowances undersection 8(c) ofthis rufe. (5) Notwifustanding subdivision (4), ifthe date on which the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit undersection 1 ofthis rule is not daAuai)' 1, September30, the following amount ofCAIR NO ozone season allowances shall be allocated to the CAIR NO ozone season opt-in unit,

as a CAIR NO ozori'e season unit, undersection 8(c) ofthis rule for the control pe'tiod that includes the date

on which the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit undersection 

### 1 of**~ru~:** x x (A) the amount of CAIR NO ozone season allowances otherwise allocated to the CAIR NO ozone season opt-in unit, as a CAIR NO

### ~zone season unit, undersection 8(c) ofthis rule for the control period; (B) multiplied bythe ratio 'ilfthe numberofdays, in the control period, starting with the date on which the CAIR NO ozone season opt-in unit becomes a CAIR NO ozone season unit undersection 1 ofthis rule, dividell bythe totai numberof days in the control period;

### ~nd (C) rounded to the nearestwhole allowance, as."ppropriate.

(j) The department shall allocate CAIR NO allowances to CAIR NO opt-in sources as follows: (1) When the CAIR opt-in permit is issued Gndersubsection (1)(7), tlfe department shall allocate CAIR NO

ozone season allowances to the CAIR NO ozone season opt-in unit, and submit to the U.S. EPAthe x x

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123·IR·326080005FDA Page 77Indiana Register
allocation forthe control period in which a CAIR NO ozone season opt-in unit enters the CAIR NO ozone
season trading program undersubsection (f)(9), in a'ccordance with subdivision (3) or (4). ' (2) By not laterthan July 31 ofthe control period in which a CAIR opt-in unit enters the CAIR NO ozone
season trading program undersubsection (f)(9) and July 31 ofeach yearthereafter, the

### departm~nt shall allocate CAIR NO ozone season allowances to the CAIR NO ozone season opt-in unit, and submit to the U.S. EPAthe allo6ation forthe control period that includes su&' submission deadline and in which the unit is a CAIR NO ozone season opt-in unit, in accordance with subdivision (3) or (4). (3) Forea'ch control period for which a CAIR NO ozone season opt-in unit is to be allocated CAIR NO ozone
season allowances, the department shall

### allocat~ in accordance with the following procedures: '

(A) The heat input, in million British thermal units (MMBtu), used for calculating the CAIR NO ozone season allowance allocation shall be the lesserofthe following: '

(i) The CAIR NO ozone season opt-in unit's baseline heat input determined undersubsection (f)(5). (ii) The CAIR Nd' ozone season opt-in unit's heat input, as determined in accordance with section 11 of this rule, forthe ifumediately priorcontrol period, except when the allocation is being calculated forthe control period in which the CAIR NO ozone season opt-in unit enters the CAIR NO ozone season trading program undersubsection (1)(9). '

, (B) The NO emission rate, in million British thermal units (MMBtu), used for calculating CAIR NO ozone
season all00ance allocations shall be the lesserofthe following: '

(i) The CAIR NO ozone season opt-in unit's baseline NO emissions rate, in pounds per million British thermal units (lbIMMBtu), determined undersubsection 

### (tj'(6) and multiplied by seventy percent (70%). (ii) The most stringent state orfederal NO e2eRe seaseR emissions limitation applicable to the CAIR NO

ozone season opt-in unit at anytime durin'g the control period for which CAIR NO, ozone season ' allowances are to be allocated. (C) The department shall allocate CAIR NO ozone season allowances to the CAIR NO ozone season opt-in unit in an amount equaling the heat iri'put underclause (A), multiplied by the NO 'bzone season emission rate underclause (B), divided by two thousand (2,000) pounds perton, and r'6unded to the nearest whole allowance as appropriate. (4) Notwithstanding subdivision (3) and ifthe CAIR designated representative requests, and the department issues a CAIR opt-in permit (based on a demonstration ofthe intentto repower stated undersubsection (e)(5») providing for, allocation to a CAIR NO ozone season opt-in unit ofCAIR NO ozone season

.. allowances underthis subdivision, subject to

### ~he conditions in

### s~ileeelieR**sUbsectic~ns** (1)(10) and

### e~ileeelieR (h), the department shall allocate to the CAIR NO ozone season opt-in unit as follows:

(A) Foreach control period in 2009 through 20f4 forwhich the CAIR NO, ozone season opt-in unit is to be allocated CAIR NO ozone season allowances as follows:

(i) The heat input,1n million British thermal units (MMBtu), used for calculating CAIR NO ozone season allowance allocations shall be determined as described in subdivision (3)(A). ' (ii) The NO emission rate, in pounds per million British thermal units (lb/MMBtu), used for calculating CAIR NO ozone'season allowance allocations shall be the lesserof:

(AA) the CAIR NO ozone season opt-in unit's baseline NO emissions rate, in pounds per million British thermal units (lb/MMBtu), determined undersubsection (1)(6); or (BB) the most stringent state orfederal NO emissions limitation applicable to the CAIR NO ozone
season opt-in unit at any time during the co'ntrol period in which the CAIR NO ozone seaso'n opt-in unit enters the CAIR NO ozone season trading program undersubsection (1)(9). ' (iii) The department s11all allocate CAIR NO ozone season allowances to the CAIR NO ozone season opt-in unit in an amount equaling the heat iri'put underclause (A)(i), multiplied bythe NO emission rate underclause (A)(ii), divided bytwo thousand (2,000) pounds perton, and rounded to the'nearest whole allowance as appropriate. (B) Foreach control period in 2015 and thereafterforwhich the CAIR NO, ozone season opt-in unit is to be allocated CAIR NO ozone season allowances as follows:

(i) The heat input,1n million British thermal units (MMBtu), used for calculating the CAIR NO ozone season allowance allocations shall be determined as described in subdivision (3)(A). ' (ii) The NO emission rate, in pounds per million British thermal units (lb/MMBtu), used for calculating the CAIR NO bzone season allowance allocation shall be the lesserof:

(AA) fifte'en-hundredths (0.15) pounds per million British thermal units (lb/MMBtu); (BB) the CAIR NO ozone season opt-in unit's baseline NO emissions rate, in pounds per million British thermal units (lb/MMBtu), determined undersubsection (1)(6); or (CC) the most stringent state orfederal NO emissions limitation applicable to the CAIR NO ozone
season opt-in unit at anytime during the co'htrol period forwhich CAIR NO, ozone season a110wances are to be allocated.

- (iii) The department shall allocate CAIR NO ozone season allowances to the CAIR NO ozone season opt-in unit in an amount equaling the heat iri'put underclause (B)(i), multiplied bythe NO emission rate 

# ,

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR-326080005FDA Page 78

### Indiana Register
underclause (B)(;i), divided bytwo thousand (2,000) pounds perton, and rounded to the nearestwhole allowance as appropriate. (5) The U.S. EPAwill record, in the compliance account ofthe source that includesthe CAIR NO ozone
season opt-in unit, the CAIR NO ozone season allowances allocated bythe departmentto the CAIR NO

ozone season opt-in unit unders'ubdivision (1). x (6) By September 1 ofthe control period in which a CAIR opt-in unit enters the CAIR NO ozone season trading program undersubsection (1)(9) and September 1 ofeach yearthereafter, the U.S. EPAwill record, in the compliance account ofthe source that includes the CAIR NO ozone season ozone season opt-in unit, the CAIR NO ozone season ozone season allowances allocated by

### ~he department to the CAIR NO ozone
season oione season opt-in unit undersubdivision (2). x

"These documents are incorporated by reference. Copies may

### be obtained from the Government Printing Office, 732 North Capitol Street NW, Washington, D.C. 20401 orare available for review and copying atthe Indiana Department of Environmental Management, Office ofAir Quality, Indiana Government Center-North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204. (AirPollution ControlBoard; 

### 326 lAC

### 24-3-12: filedJan 

### 26, 2007, 10:25a.m.: 20070221-IR-326050117FRA: errata filedJan 

### 29, 2007, 

### 2:43 p.m.: 20070221-IR-326050117ACAI



### Notice of Public Hearing

Posted: 01/23/2008byLegislative ServicesAgency 

### An html version ofthis document.

Date: Jun 26,2009 9:29:21AM EDT DIN: 20080123-IR·326080005FDA Page 79